Question No 12 Chapter No 13

Question No 12 Chapter No 13

Dishonour and Renewal of Bill

12.On 1st January 2018, Dinesh purchased goods from Chander for 60,000 plus CGST and SGST @ 6% each. Dinesh pays 7,200 in cash and accepts a bill drawn by Chander for the balance amount payable after two months. On the due date, Dinesh is able to manage 20,000 in cash and he arranges with Chander for the retirement of the bill in consideration of this payment and a fresh bill at four months for the balance plus interest at 18% per annum. The second bill is duly met on maturity. make the necessary Journal entries in the books of Chander and Dinesh.

The solution of Question No 12 Chapter No 13: –

In the books of Chander (Drawer)
Date  Particulars
Jan.01Dinesh A/cDr. 67,200 
 To Sale A/c   60,000
 To Output CGST A/c   3,600
 To Output SGST A/c   3,600
 (Being Goods sold to Dinesh plus 6%CGST and SGST)    
Jan.01Bills Receivable A/cDr. 60,000 
 Cash A/cDr. 7.200 
 To Y A/c   67,200
 (Being Dinesh paid cash in part and accepted a bill for there mining amount)    
Mar.04Dinesh A/cDr. 60,000 
 To Bills Receivable A/c   60,000
 (Being Bill cancelled on due date)    
Mar.04Cash A/cDr. 20,000 
 To Dinesh   20,000
 (Being Cash received from Dinesh)    
Mar.04Dinesh A/cDr. 2,400 
 To Interest A/c   2,400
 (Being Y accepted the new bill)    
Mar.04Bills Receivable A/cDr. 42,400 
 To Dinesh A/c   42,400
 (Being Dinesh accepted the new bill)    
Jul.07Cash A/cDr. 42,400 
 To Bills Receivable A/c   42,400
 (Being Bill honoured on due date)    
In the books of Dinesh (Drawee)
Date  Particulars
Jan. 01Purchases A/cDr. 60,000 
 Input CGST A/cDr. 3,600 
 Input SGST A/cDr. 3,600 
 To X A/c   67,200
 (Being Goods purchased from Chander plus 6% CGST and SGST)    
Jan. 01Chander A/cDr. 67,200 
 To Bills Payable A/c   60,000
 To Cash A/c   7,200
 (Being Bill drawn by X, accepted)    
Mar. 04Bills Payable A/cDr. 60,000 
 To Chander A/c   60,000
 (Being Bill dishonoured on due date)    
Mar. 04Chander A/cDr. 20,000 
 To Cash A/c   20,000
 (Being Cash paid to Chander)    
Mar. 04Interest A/cDr. 2,400 
 To Chander   2,400
 (Being interest due to being paid)    
Mar. 04Chander A/cDr. 42,400 
 To Bills Payable A/c   42,400
 (Being interest due to be paid)    
Jul. 04Bills Payable A/cDr. 42,400 
 To Cash A/c   42,400
 (Being Interest due to be paid)    

Working Note: –

Calculation of Discounting Charges

Amount of Rebate=40,00015X1
 =Rs 2,400    

Bills Payable Book | Subsidiary Books | Examples

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

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

ISC Accounts 11 20 Image min 197x300 - Question No 12 Chapter No 13 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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