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Standard XI

Accountancy

Journal for Dishonour Incase of Discounting

A bill of Rs....

Question

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

Rs. 12,000

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Rs. 11,900

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Rs. 11,880

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Rs. 12,020

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Solution

The correct option is D
Rs. 12,020

When the bill is discounted with the bank is dishonoured the journal entry will be:

Drawee A/c Dr. 12,020

To Bank A/c 12,020

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Q. On January

15

2011

, Raghu sold goods worth Rs

35, 000

to Devendra and drew upto the latter three bills of exchanges. The first bill was for Rs

5, 000

payable after one month, the second bill was for Rs

20, 000

payable after three months and third bill for balance amount for

4

months. Raghu endorsed the first bill in favour of his creditor, Dewan in full settlement of a debt of Rs

5, 200

. The second bill was discounted by Raghu at the rate of

6 %

per annum and the third bill was retained by Raghu till the date of maturity. Devendra dishonoured the bill on maturity and the bank paid Rs

30

as noting charges. Four days before the maturity of the third bill Raghu, sent the same for collection to his bank. The third bill was also dishonoured by Devendra and the bank paid Rs.

200

as noting charges. Five days after the dishonour of the bill. Devendra paid the entire amount due to Raghu along with interest Rs

1, 000

for this purpose Devendra obtained a short term loan from his bank.
You are requested to record the necessary Journal entries in the books of Raghu.

A sold goods to B for Rs.4,000 and drew a bill for the amount due. B after giving his acceptance returned the bill to A. A discounted it form his bank for Rs.3,900. On due date, bill returned dishonoured and bank paid Rs.50 as noting charges. After one week B paid the full amount of the bill including the noting charges. Give journal entries in the books of A only.

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

The correct option is D Rs. 12,020 When the bill is discounted with the bank is dishonoured the journal entry will be: Drawee A/c Dr. 12,020 To Bank A/c 12,020

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

The correct option is D
Rs. 12,020

When the bill is discounted with the bank is dishonoured the journal entry will be:

Drawee A/c Dr. 12,020

To Bank A/c 12,020