Professional Documents
Culture Documents
Accounts Test
1. What do you mean by endorsement of Bill?
2. Archana purchased goods from Babita on Credit for Rs. 20,000. On next day Archana paid Rs. 10,000 to
Babita and accepted a bill drawn by Babita for the balance amount 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 Babita.
3. 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.
4. On 10th March, 1995 Rajesh Bhoyar, Gandhinagar, Nagpur draws a 2 months bill for Rs. 3,000 on Samira
Choudhary, Main Road, and Belapur. Samira Choudhary accepted the bill on 15th March 1995