Question 24 Chapter 14 – Class 11 Unimax

Question 24 Chapter 14 – Class 11 Unimax

24. A sold goods to B for ₹ 5,000 and drawn a bill on B for the same amount. Before the due date, B requests A to cancel the bill and a draw a fresh bill on him. A agrees to the proposal. B pays ₹ 1,000 in cash and accepts a fresh bill for ₹ 4,300 for a further period of time. The new bill is dishonored and A pays ₹ 50 as noting charges. Thereafter, B becomes insolvent and a dividend of 50 paise in the rupee is received from his estate. Pass journal entries in the books of A.

The solution of Question 24 Chapter 14 – Class 11 Unimax

Journal for Mr. ‘A’ (Drawer)

Date	Particulars		L.F.	Debit	Credit
i	B’s A/c	Dr.		5,000
	To Sales A/c				5,000
	(Being goods sold on credit)
ii	Bill receivable A/c	Dr.		5,000
	To B’s A/c				5,000
	(Being a bill drawn and accepted)
iii	B’s A/c	Dr.		5,000
	To Bill receivable A/c				5,000
	(Being bill cancelled request)
iv	Cash A/c	Dr.		1,000
	To B’ A/c				1,000
	(Being cash received from Mr. B)
v	Bills receivable A/c	Dr.		4,300
	To B’s A/c				4,000
	To Interest A/c				300
	(Being a new bill drawn and accepted)
vi	B’s A/c	Dr.		4,350
	To Bill receivable A/c				4,300
	To Cash A/c				50
	(Being the second bill dishonoured and ₹ 50 paid as noting charges)
vii	Cash A/c	Dr.		2,175
	Bad debts A/c	Dr.		2,175
	To B’s A/c				4,350
	(Being due to in solvently of Mr. ‘B’ only 50 paise in a rupee is received from him)