Question No 18 Chapter No 13

Question No 18 Chapter No 13

Dishonour of bill discounted from the Bank

18. A sold goods to B for Rs 60,000 charging IGST @18% and immediately drew a bill on B who duly accepted the same. A endorsed the bill to C .C endorsed it to his creditor D. D discounted the bill for Rs 68,000. On the date of maturity, the bill was dishonoured and bank paid noting charges amounting to Rs 200
Show Journal entries in the books of all the parties to record these transaction.

The solution of Question No 18 Chapter No 13: –

In the books of A
Date  Particulars
L.F.DebitCredit
2018     
 B A/cDr. 70,800 
 To Sale A/c   60,000
 To Output IGST A/c   10,800
 (Being goods sold to B plus 18% IGST.)    
      
 Bill Receivable A/cDr. 70,800 
 To B A/c   70,800
 (Being Bill drew on B )    
      
 C A/cDr. 3,600 
 To Bill Receivable A/c   3,600
 (Being bill Receivable endorsed to C )    
     
In the books of B
Date  Particulars
L.F.DebitCredit
2018     
(ii)Purchases A/cDr. 60,000 
 Input IGST A/cDr. 10,800 
 To A A/c   70,800
 (Being cheque received from Ghanshyam & Co.)    
      
 A A/cDr. 70,800 
 To Bill Payable A/c   70,800
 (Being new bill drawn on Ghanshyam with Rs 100 interest)    
      
 Bill Payable A/cDr. 70,800 
 To Bank A/c   70,800
 (Being Bill dishonoured)    
     
In the books of C
Date  Particulars
L.F.DebitCredit
2018     
 Bill Receivable A/cDr. 70,800 
 To A A/c   70,800
 (Being cheque received from Ghanshyam & Co.)    
      
 D A/cDr. 70,800 
 To Bill Receivable A/c   70,800
 (Being Bill receivable endorsed to D. )    
     
In the books of D
Date  Particulars
L.F.DebitCredit
2018     
 Bill Receivable A/cDr. 70,800 
 To C A/c   70,800
 (Being Bill receivable received from C)    
      
 Bank A/cDr. 68,000 
 Discount A/cDr. 2,800 
 To Bank A/c   70,800
 (Being new bill drawn including noting changes. )    
      
 Bill Receivable A/cDr. 70,800 
 To B A/c   70,800
 (Being new bill drawn including noting changes. )    
     

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 18 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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