(i)Rajan retired his acceptance to Amar for ? 20,000 before maturity andrebate of 400.Two month before due date. Kamal informed Rajan that he wants t Pajanpayment of his acceptance amounting to7 15.000 immediately to whichagreed. He allowed a rebate @ 8% p.a.(ii)[Ans.(i) Cash paid ? 19,600 (ii) Rebate 200] Dishonour and Renewal of BIl16. On 1st January, 2019, X sold goods to Y for 7 12.000 and immediately received homaccepted the bill and returned it to X, On due date the bill was dishonoured and X paid heas noting charges. Ten days later, Y païd the amount due to X. Pass journal entries n urebooks of both parties.[Ans. Cash received by X 7,050]17. On 1st January, 2019 P' purchased goods worth 3 6.000 from Q. P accepted a hnemonths bill for 6,000. On the due date, it was dishonoured. Noting charges paid by Q S0.On April 4, 2019, P requested Q for renewal of he bill for another two months, for which Qagreed, provided that interest was paid @ 12% p.a. in cash.Make journal entries to these transactions in the books of P and Q.LANS. Interest 121, Amount of renewal bill 6,050]18. On 1st April 2019, X sold goods for the value of 5,000 to Y and drew upon him atbill for three months for the amount. Y accepted that draft. On the due date, Y expressed hisinability to meet the bill and offered to pay 2,000 in cash and accepted a new bill for thebalance plus interest at 10% p.a. for two months. X agreed to this.proposal. On maturity, thisbill was duly met by Y. Pass entries in the books of X and Y.[Ans. Interest 50, Amount of new bill 7 3,050] Discounted BIll Dishonoured19. Ram sold goods worth 4,000 to Mohan on 1st January, 2019. On the same date, Ramdraws a bill on Mohan for 4,000 for a period of three months, which is duly accepted byMohan. Ram discounted it with his bank at 6%. On the date of maturity the bill wasdishonoured, the bank paid 50 as noting charges.On April 4, Mohan accepted a new bill for 2 months drawn by Ram for the amount duetogether with interest @ 12% p.a. This bill was duly met.[Ans. Discount 60, Interest 81 on 4,050, New bill for 4,131]20. X sold g0ods to Y for 15,000 on 1st January, 2019 and drew a bill on later for theamount payable after 3 months. Y accepted the bill and returned it to X. X discounted the billwith his bank 8% p.a. The bill was dishonoured on due date and bank paid 150 as notingcharges. Y paid 5,150 by cheque to X and accepted a new bill for the balance amount duetogether with interest @ 12% p.a. for 2 months. Y showed his inability to meet this bill. Heagain requested X to draw a new bill for the amount along with 200 towards interest forI month. X agreed. This bill was met on maturity.Pass entries in the books of both X and Y.[Ans. Discount 300, New bill for 10,200 (2 10,000+ 200 interest, third Bill drawn for ? 10.4001 Dishonour of Endorsed Bill21. On Ist January, 2019, B accepted a bill of 3 months for { 10,000 written on him by AA endorsed it to C. The bill was dishonoured on the due date, C had to spend 50 as notinochargesA after twenty days accepted a new bill for 2 months drawn by C, in which 200 for interestwere also included. After 10 days of the dishonour of the bill. B paid full money to A including100 as interest. A honoured his acceptance to C.Show journal entries in the books of A, B and C.

Question

(i)Rajan retired his acceptance to Amar for ? 20,000 before maturity andrebate of 400.Two month before due date. Kamal informed Rajan that he wants t Pajanpayment of his acceptance amounting to7 15.000 immediately to whichagreed. He allowed a rebate @ 8% p.a.(ii)[Ans.(i) Cash paid ? 19,600 (ii) Rebate 200]> Dishonour and Renewal of BIl16. On 1st January, 2019, X sold goods to Y for 7 12.000 and immediately received homaccepted the bill and returned it to X, On due date the bill was dishonoured and X paid heas noting charges. Ten days later, Y païd the amount due to X. Pass journal entries n urebooks of both parties.[Ans. Cash received by X 7,050]17. On 1st January, 2019 P' purchased goods worth 3 6.000 from Q. P accepted a hnemonths bill for 6,000. On the due date, it was dishonoured. Noting charges paid by Q S0.On April 4, 2019, P requested Q for renewal of he bill for another two months, for which Qagreed, provided that interest was paid @ 12% p.a. in cash.Make journal entries to these transactions in the books of P and Q.LANS. Interest 121, Amount of renewal bill 6,050]18. On 1st April 2019, X sold goods for the value of 5,000 to Y and drew upon him atbill for three months for the amount. Y accepted that draft. On the due date, Y expressed hisinability to meet the bill and offered to pay 2,000 in cash and accepted a new bill for thebalance plus interest at 10% p.a. for two months. X agreed to this.proposal. On maturity, thisbill was duly met by Y. Pass entries in the books of X and Y.[Ans. Interest 50, Amount of new bill 7 3,050]> Discounted BIll Dishonoured19. Ram sold goods worth 4,000 to Mohan on 1st January, 2019. On the same date, Ramdraws a bill on Mohan for 4,000 for a period of three months, which is duly accepted byMohan. Ram discounted it with his bank at 6%. On the date of maturity the bill wasdishonoured, the bank paid 50 as noting charges.On April 4, Mohan accepted a new bill for 2 months drawn by Ram for the amount duetogether with interest @ 12% p.a. This bill was duly met.[Ans. Discount 60, Interest 81 on 4,050, New bill for 4,131]20. X sold g0ods to Y for 15,000 on 1st January, 2019 and drew a bill on later for theamount payable after 3 months. Y accepted the bill and returned it to X. X discounted the billwith his bank 8% p.a. The bill was dishonoured on due date and bank paid 150 as notingcharges. Y paid 5,150 by cheque to X and accepted a new bill for the balance amount duetogether with interest @ 12% p.a. for 2 months. Y showed his inability to meet this bill. Heagain requested X to draw a new bill for the amount along with 200 towards interest forI month. X agreed. This bill was met on maturity.Pass entries in the books of both X and Y.[Ans. Discount 300, New bill for 10,200 (2 10,000+ 200 interest, third Bill drawn for ? 10.4001> Dishonour of Endorsed Bill21. On Ist January, 2019, B accepted a bill of 3 months for { 10,000 written on him by AA endorsed it to C. The bill was dishonoured on the due date, C had to spend 50 as notinochargesA after twenty days accepted a new bill for 2 months drawn by C, in which 200 for interestwere also included. After 10 days of the dishonour of the bill. B paid full money to A including100 as interest. A honoured his acceptance to C.Show journal entries in the books of A, B and C.

Accepted Answer

A bill of exchange appears to be a collection of written instructions committing one party to pay a…