Journal for Dishonour Incase of Holding till Maturity

Q.

Dishonour of a bill is recorded in:

1. Cash account

2. Sales account

3. Purchases account

4. Bills receivable account

Q.

Narayanan purchased goods for Rs. 25, 000 from Ravinderan on February 1, 2011. Ravinderan drew upon Narayanan a bill of exchange from the same amount payable after 30 days. On the due date, Narayanan dishonoured his acceptance.

Pass the necessary Journal entries in the books of Ravinderan and Narayanan in folloiwng cases
I. When the bill was retained by Ravinderan with him till the date of its maturity.
II. When the bill was discounted by Ravinderan immediately with his bank at the rate of 6% per annum.
III. When the bill was endorsed to his creditor Ganeshan.
IV. When the bill was sent by ravideran to his bank for collection a few days before it maturity.

Q. Leena sold goods to Meena on 1st March, 2009 for ₹ 68, 000 and drew two Bills of Exchange of the equal amount upon Meena payable after three months. Leena immediately discounted the first bill with her bank at 12% p.a. The bill was dishonoured by Meena and Bank paid ₹ 55 as noting charges.
The second bill was retired on 4th May, 2009 under a rebate of 6% p.a. with mutual agreement.
Journalise the above in the books of Leena and Meena.

Q.

A bill of Rs.12, 000 was discounted by A with the banker for Rs. 11, 880. At maturity, the bill returned dishonoured, noting charges Rs. 20. How much amount will the bank deduct from A’s bank balance at the time of such dishonour?

1. Rs. 12, 000

2. Rs. 11, 800

3. Rs. 12, 020

4. Rs. 11, 900

Q.

Vimal purchased goods Rs. 25, 000 from Kamal on January 15, 2011 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity, the bill was duly presented for payment. Vimal dishonoured the bill.
Record the necessary Journal entries in the books of Kamal and Vimal when
I. The bill was retained by Kamal till the date of its maturity.
II. The bill was immediately discounted by Kamal with his bank at the rate of 6% per annum.
III. The bill was endorsed by Kamal in favour of his creditor sharad. Five days before its maturity the bill was sent by Kamal to his bank for collection.

Q.

On January 1, 2011 Harsh accepted a month bill for Rs. 10, 000 drawn on him by Tanu for latter's benefit. Tanu discounted the bill on same day at the rate of 8% per annum. On the due date, Tanu sent a cheque to Harsh for honour the bill. Harsh duly honoured his acceptance.
Record the journal entries in the books of Tanu and Harsh.

Q.

On 1st January, 2016, S purchased goods from P for Rs. 16, 000 and immediately drew a promissory note in favour of P payable after 3 months. On the date of maturity of the promissory note, the Government of India declared holiday under the Negotiable Instrument Act, 1881. Since, P was unaware about the provision of the law regarding the date of maturity of the bill, she handed over the bill to her lawyer, who duly presented the bill and received the payment. The amount of the bill was handed over by the lawyer to P immediately. Record the necessary journal entries in the books of P and S.

Q.

A draws a bill of Rs. 50, 000 and B accepts it. After this, B becomes insolvent and only 40 paisa in a rupee could be recovered. What is the amount that can be recovered?

1. Rs 20, 000

2. Rs 30, 000

3. Rs 35, 000

4. None of the above

Q.

When the bill are to be produced to notary public?

1. At the time of drawing of bill

2. At the time of bill for collection

3. At the time of acceptance of bill

4. At the time of dishonor of the bill

Q. The Government of India Act of $1935$ borrowed its preamble from ________.

1. The Constitution of the USA
2. The Constitution of Australia
3. From the Government of India Act of $1919$
4. From Pitt's India Act

Q.

Pass Book showed the balance of Rs 3, 500 as on 30^th September 2011. On the same date Cash Book showed the balance of Rs 3, 170.

The following Points were noted.
(i) Bank collected Dividend on shares Rs 400, but not entered in the Cash Book
(ii) Cheques paid into Bank but not Credited by Bank Rs 570
(iii) Discounted Bill dishonoured Rs 750 debited by Bank, but no intimation was received from the Bank
(iv) Cheques of Rs 1, 250 was issued on 29^th September 2011 but not presented to the Bank for payment till 30^th sept. 2011
Prepare Bank Reconciliation Statement as on 30^th September, 2011

Q. Recording the fact of dishonour on the bill by notary public.

1. Drawing of bill
2. Renewal of bill
3. Noting of bill
4. Entry of bill

Q. Change the following statement into passive voice:

1. You will be asked a lot of questions at the interview.
2. You will asked a lot of questions at the interview.
3. You will be being asked a lot of questions at the interview.
4. You shall be being asked a lot of questions at the interview.

Q.

Prepare a Bank Reconciliation Statement as on 30^th June 2011 from the following details-
(i) Pass Book shows an overdraft of Rs 6, 000
(ii) Bills Receivable amounting to Rs 3, 500 discounted with the Bank, later dishonored, but not recorded in the Cash Book due to lack of information.
(iii) Cheques deposited into the Bank but not realized Rs 15, 000
(iv) Cheques amounting to Rs 2, 500 issued but not debited by Bank.
(v) Total of Cash Book debit side Bank column was short by Rs 560.
(vi) Transferred Rs 4, 000 from current Account of fixed Deposit Account was not recorded in the Cash Book
(vii) Our customer directly deposited Rs 4, 500 in our Bank A/c

Q. Noting charges are paid in the event of _________ of a bill.

1. Withdrawal
2. Payment
3. Dishonour
4. Deposit

Q.

If amount of 950 is received from a debtor of Rs.1, 000 in final settlement then what will be the effect of this transaction on the capital?

Q.

Which of the following statement is true ?

1. A bill contains an unconditional promise to pay

2. Noting charges are borne by the drawer in the event of dishonor of bill

3. Noting charges are borne by the drawee in the event of dishonor of bill

4. A bill is drawn by purchaser

Q.

Ram’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2011					2011
Apr. 1		To Balance b/d		7, 000	Jun.30	By Sales Return A/c		300
Oct.25		To Sales A/c		13, 000	Sept.5	By Cash A/c		6, 500
Dec.31		To Sales		10, 000	5	By Discount A/c		200
					Oct. 5	By Cash A/c		10, 000
					2012
					Mar. 31	By Balance c/d		13, 000
		Total		30, 000				30, 000
2012
Apr. 1		To Balance b/d		13, 000

From the above Ram’s Account answer the following questions.