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 L.F. Debit Credit 2016 Jan.01 Dinesh A/c Dr. 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.01 Bills Receivable A/c Dr. 60,000 Cash A/c Dr. 7.200 To Y A/c 67,200 (Being Dinesh paid cash in part and accepted a bill for there mining amount) Mar.04 Dinesh A/c Dr. 60,000 To Bills Receivable A/c 60,000 (Being Bill cancelled on due date) Mar.04 Cash A/c Dr. 20,000 To Dinesh 20,000 (Being Cash received from Dinesh) Mar.04 Dinesh A/c Dr. 2,400 To Interest A/c 2,400 (Being Y accepted the new bill) Mar.04 Bills Receivable A/c Dr. 42,400 To Dinesh A/c 42,400 (Being Dinesh accepted the new bill) Jul.07 Cash A/c Dr. 42,400 To Bills Receivable A/c 42,400 (Being Bill honoured on due date)
 In the books of Dinesh (Drawee) Date Particulars L.F. Debit Credit 2016 Jan. 01 Purchases A/c Dr. 60,000 Input CGST A/c Dr. 3,600 Input SGST A/c Dr. 3,600 To X A/c 67,200 (Being Goods purchased from Chander plus 6% CGST and SGST) Jan. 01 Chander A/c Dr. 67,200 To Bills Payable A/c 60,000 To Cash A/c 7,200 (Being Bill drawn by X, accepted) Mar. 04 Bills Payable A/c Dr. 60,000 To Chander A/c 60,000 (Being Bill dishonoured on due date) Mar. 04 Chander A/c Dr. 20,000 To Cash A/c 20,000 (Being Cash paid to Chander) Mar. 04 Interest A/c Dr. 2,400 To Chander 2,400 (Being interest due to being paid) Mar. 04 Chander A/c Dr. 42,400 To Bills Payable A/c 42,400 (Being interest due to be paid) Jul. 04 Bills Payable A/c Dr. 42,400 To Cash A/c 42,400 (Being Interest due to be paid)

Working Note: –

Calculation of Discounting Charges

 Amount of Rebate = 40,000 x 15 X 1 100 12 = Rs 2,400

Bills Payable Book | Subsidiary Books | Examples

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

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