Accounts Test No. 1 Morning

Accounts Test 1. What is Bill of exchange? 2. Premlal sold goods to Sunderlal worth Rs. 10,000/- and Sunderlal accepted the bill for Rs. 10,000/- at 3 months drawn by Premlal. Premlal Discounted the bill with his bank @ 6 % p.a. on due date the bill was dishonoured and Sunderlal requested Premlal to accept Rs. 4,000 immediately and draw upon him a new bill for the remaining amount at 3months together with an interest at 10% p.a. Premlal agreed and the second bill was duly honoured. Give the Journal entries in the books of Premlal. 3. Minal draws a bill on Usha for Rs. 5,000 at 3 months. Usha accepts the bill and return to Minal. Minal discounted the bill @ 12 % p.a. with the bank. On Maturity Usha finds herself unable to make payment of the bill and requested Minal to renew the bill. Minal accepts the proposal on the condition that Usha should Pay Rs. 2,000 in cash and accept a new bill at one month along with interest at 10% p.a. These arrangements were carried through. Usha retires the bill by paying Rs. 3015/- Pass Journal Entries in the books of Minal. 4. Drawer : Vilas Patil, 20, M.G. Road, Pune. Drawee : Vikas Pawar, 31, S.V. Road, Nasik Payee : Viraj Potade, 41, A.B. Road, Sholapur, Period : 3 months Amount Rs : 7500 Date of Bill : 1st January, 2007 Date of Acceptance : 3rd January, 2007

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