Question No 27 Chapter No 14 – Class 11 Unimax

Question No 27 Chapter No 14 – Class 11 Unimax

27. Shubham draws on Rajendra a bill for ₹ 45,000 on 1st June, 2019 for 3 months. Rajendra accepts the bill and sends it to Shubham who gets it discounted for ₹ 44,100. Shubham immediately remits ₹ 14,700 to Rajendra. On the due date Shubham, being unable to remit the amount due accepts a bill for 63,000 for three months which is discounted by Rajendra for ₹ 61,650. Rajendra sends ₹ 11,100 to Shubham. On the due date Shubham become insolvent, his estate paying forty paise in the rupee. Given journal entries in the books of Shubham and Rajendra.

The solution of Question No 27 Chapter No 14 - UNIMAX Class 11

Journal for Mr. ‘Shubham’ (Drawer)

Date	Particulars		L.F.	Debit	Credit
2019
June 1	Bill receivable A/c	Dr.		45,000
	To Rajendra’s A/c				45,000
	(Being acceptance of bill received from Rajendra for mutual accommodation)
June 1	Bank A/c	Dr.		44,100
	Discount A/c	Dr.		900
	To Bills receivable A/c				45,000
	(Being bill discounted with bank)
June 1	Rajendra’s A/c	Dr.		15,000
	To Cash A/c				14,700
	To Discount A/c				300
	(Being a part of bill remitted to Rajendra immediately)
Sept. 4	Rajendra’s A/c	Dr.		63,000
	To Bills payable A/c				63,000
	(Being acceptance of bill given to Rajendra)
Sept. 4	Cash A/c	Dr.		11,100
	Discount A/c	Dr.		900
	To Rajendra’s A/c				12,000
	(Being cash received from Rajendra and discount allowed)
Dec. 7	Bill payable A/c	Dr.		63,000
	To Rajendra’s A/c				63,000
	(Being bill not met on due date)
Dec. 7	Rajendra’s A/c	Dr.		42,000
	To cash A/c				16,800
	To Deficiency A/c				25,200
	(Being insolvent, only 40% amount paid to Rajendra)

 

Journal for Mr. ‘Rajendra’ (Drawee)

Date	Particulars		L.F.	Debit	Credit
2019
June 1	Shubham A/c	Dr.		45,000
	To Bill payable A/c				45,000
	(Being acceptance of bill given to Shubham for 3 months)
Nov. 3	Cash A/c	Dr.		14,700
	Discount A/c	Dr.		300
	To Shubham A/c				15,000
	(Being cash received from Shubham and discount allowed)
Sept. 4	Bills payable A/c	Dr.		45,000
	To Cash A/c				45,000
	(Being payment of bill made on due date)
Sept. 4	Bills payable A/c	Dr.		63,000
	To Shubham A/c				63,000
	(Being acceptance of bill received from Shubham)
Sept. 4	Bank A/c	Dr.		61,650
	Discount A/c	Dr.		1,350
	To Bill payable A/c				63,000
	(Being bill discounted with bank)
Sept. 4	Shubham A/c	Dr.		12,000
	To Cash A/c				11,100
	To Discount A/c				900
	(Being cash paid to Shubham)
Dec. 7	Shubham A/c	Dr.		63,000
	To Bank A/c				63,000
	(Being bill not met on due date)
Dec. 7	Cash A/c	Dr.		16,800
	Bad debts A/c	Dr.		25,200
	To Shubham (39,000+12,000) A/c				42,000
	(Being Shubham become insolvent any only 40% amount received from him)

Working Note:

(1) As soon as one party become insolvent after making dishonoured entry it should be found as to how much amount is due by Shubham to Rajendra.

(2) Discounting charges of second bill have been apportioned in the ratio in which Shubham & Rajendra shared the proceeds of second bill i.e. 2:1 shown as follows:

Total proceeds received of second bill = ₹ 61,650

Amount paid on behalf of partners for 1st bill

	Shubham	Rajendra
	30,000	15,000
Balance (61,650-45,000) 16,650, distributed as	11,100	5,550
	41,100	20,550
Ratio in which proceeds of second bill shared 2:1
Discounting charges of second bill to b shared as	900	450

Read out the full article to know the meaning of Cash Book

Bill of exchange (BOE): Meaning and Examples

Also, Check out the same article in Hindi from the following link

Bill of exchange (BOE): Meaning and Examples

Also, Check out the solved question of all Chapters: –

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Part-I

• Chapter No. 1 - Introduction of Accounting
• Chapter No. 2 - Theory Base of Accounting
• Chapter No. 3 - Vouchers and Transactions
• Chapter No. 4 - Journal
• Chapter No. 5 - Goods and Services Tax (GST): An Introduction
• Chapter No. 6 - Ledger
• Chapter No. 7 - Special Purpose Book -  Cash Book
• Chapter No. 8 - Other Subsidiary Books 
• Chapter No. 9 - Trial Balance 
• Chapter No. 10 - Rectification of Errors
• Chapter No. 11 - Depreciation
• Chapter No. 12 - Provision and Reserves
• Chapter No. 13 - Bank Reconciliation Statement
• Chapter No. 14 - Bills of Exchange 

Students may choose only one part from the Part II and Part III

Part-II

• Chapter No. 15 - Financial Statements (Without Adjustments)
• Chapter No. 16 - Financial Statements (With Adjustments)
• Chapter No. 17 - Accounts from Incomplete Records -  Single Entry System

Part-III

• Chapter No. 18 - Introduction to Computers and Accounting information System
• Chapter No. 19 - Computerised Accounting
• Chapter No. 20 - Accounting Software: Tally 
• Chapter No. 21 - Data Base System
• Chapter No. 22 - Concept of Entity and Relationship 

Check out T.S. Grewal +1 Book 2019 @ Oficial Website of Sultan Chand Publication