Accounts Test No. 2 Bills of Exchange

OMTEX – CLASSES T O TA L

M A R K S

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C H A P T E R N A M E : - B I L L S T I M E : - 1 H O U R O N LY.

O F

A C C O U N T S . T E S T S N O . 2

E X C H A N G E

Note: - Use of calculator is not allowed.

Q1. Objective questions. (2 marks) 1. Who is drawer? 2. Who is drawee?

Q2. Attempt any four questions from the following. Each questions carries 12 marks. (48 marks) 1. Baloo owes Kaloo Rs.8000. Kaloo then draws a bill for Rs. 8000 on Baloo for a period of three months. Baloo accepts and return it to Kaloo. Kaloo discounted the bill with his bank at 12 % p.a. On due date, the bill was dishonoured noting charges amount to Rs. 30. Kaloo then draws a bill for the balance plus interest of Rs. 170. Before the due date of this bill Baloo pays the amount at a discount of Rs. 40 to retire the bill. Pass Journal Entries in the books of Kaloo. 2. Rupali accepted a bill for Rs. 2,000/- drawn by Deepali at three months. Deepali got the bill discounted with her bank for Rs. 1,900. Before the due date Rupali approached Deepali for renewal of the bill. Deepali agreed on the condition that Rs. 1,000/- be paid immediately together with interest on the remaining amount at 6% p.a. For balance Rupali should accept a new bill for three months. These arrangements were carried through but afterwards, Rupali become Insolvent and only 40 % of the amount could be recovered from her estate. Give journal entries in the books of Deepali.

3. Bhagwan sold goods to Deo for Rs. 3,000. On the same date Deo accepted a bill for 2 months. Bhagwan endorsed the bill to Ishwar. On the due date of the bill, Ishwar informed that the bill is dishonoured and the noting Charges were Rs. 20. Bhagwan drew a new bill on Deo for the amount due including noting charges and an interest of Rs. 130. Before the due date of the second bill Deo become bankrupt and 20 paise in a rupee was received from his estate as first and final dividend. Pass the necessary journal entries in the books of Bhagwan. 4.

On 1st March, Ramchandra sold goods to Raman worth Rs. 8,000/and Raman accepted the Bill for Rs. 8,000/- at 3 months drawn by Ramchandra. Ramchandra discounted the bill with his bank @ 6% p.a. On due date the bill was dishonoured and Raman requested Ramchandra to accept Rs. 4,000/- immediately and draw upon him a new bill for the remaining amount at 3 months together with an interest at 10% p.a. Ramchandra agreed. The second Bill was duly honoured. Give Journal entries in the books of Raman.

5. Archana purchased goods from Babita on Credit for Rs. 10,000 and accepted a bill drawn by Babita for four months. Babita discounted the bill with her bank for Rs. 9600/- Before the due date Archana approached Babita with a request to renew the Bill Babita agreed with the condition that Archana should pay Rs. 6000 with interest of Rs. 120 and accept a new bill for the balance. The arrangement was duly carried out. New bill is met on the due date. Pass journal entries in the books of Archana. 6.

Anant brought goods worth Rs. 4,500 from Samant on August 1, 2006. On the same day, Anant accepted the bill for Rs. 4,500 at 3 months drawn by Samant. Samant got the bill discounted with his bank at 6%. Before the due date, Anant informed Samant about his inability to pay the amount of bill. He further requested him to accept Rs. 2,500 in cash and immediately draw upon him a new bill for the remaining amount at 2 months together with interest at 8% p.a. Samant agreed. The second bill was duly paid on maturity. Give journal entries in the books of Anant.