Question No 19 Chapter No 14 – Class 11 Unimax

19. A sells goods to B for ₹ 10,000 plus CGST and SGST @ 9% each. Vimal pays ₹ 1,800 in cash and accepts a bill on him for the balance amount for 3 months. Before the due date, B requests A to cancel the bill, to accept of 2 months ₹ 200 being the interest for the extended period. A agrees to the proposal. The new bill is duly honored.
Pass necessary journal entries and other party’s account in the books of both the parties.

Table of Contents

The solution of Question No 19 Chapter No 14 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

The solution of Question No 19 Chapter No 14 – UNIMAX Class 11

Journal for Mr. ‘A’ (Drawer)
Date	Particulars		L.F.	Debit	Credit
2020
Jan. 1	B’s A/c	Dr.		11,800
	To Sales A/c				10,000
	To Output CGST A/c				900
	To Output SGST A/c				900
	(Being goods sold to B, charged CGST and SGST @ 9% each)

Jan. 1	Bill receivable A/c	Dr.		10,000
	Cash A/c	Dr.		1,800
	To B’s A/c				11,800
	(Being the cash received and acceptance from balance amount from B for 3 months)

Jan. 1	B’s A/c	Dr.		10,000
	To Bill receivable A/c				10,000
	(Being the bill cancelled for renewal)

Mar.7	Cash A/c	Dr.		3,000
	To B’s A/c				3,000
	(Being the cash received as part payment)

	B’s A/c			200
	To Interest A/c				200
	(Being the interest charges for the extended period)

Mar.7	Bill receivable A/c			7,200
	To B’s A/c				7,200
	(Being the new bill drawn for the balance plus interest)

June 10	Bank A/c	Dr.		7,200
	To Bill receivable A/c				7,200
	(Being the new bill duly honoured)

Dr.	B’s A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Sales A/c		10,000		By Bill receivable A/c		10,000
	To Output CGST A/c		900		By Bank/Cash A/c		1,800
	To Output SGST A/c		900		By Bank/Cash A/c		3,000
	To Bills receivable A/c		10,000		By Bill receivable A/c		7,200
	To Interest A/c		200

			22,000				22,000

Journal for Mr. ‘B’ (Drawee)
Date	Particulars		L.F.	Debit	Credit

	Purchases A/c	Dr.		10,000
	Input CGST A/c	Dr.		900
	Input SGST A/c	Dr.		900
	To A’s A/c				11,800
	(Being the goods purchased from A, paid CGST and SGST @ 9% each)

	A’s A/c	Dr.		11,800
	To Bill payable A/c				10,000
	To Bank A/c				1,800
	(Being the cash paid and acceptance of a bill for the balance amount give to anil)

	Bill payable A/c	Dr.		10,000
	To A’s A/c				10,000
	(Being the bill cancelled on renewal)

	A’s A/c	Dr.		3,000
	To Bank A/c				3,000
	(Being the part payment made)

	Interest A/c	Dr.		200
	To A’s A/c				200
	(Being the interest payable to A for the extended period)

	A’s A/c	Dr.		7,200
	To Bills payable A/c				7,200
	(Being the acceptance of a new bill for the balance plus interest)

	Bills payable A/c	Dr.		7,200
	To Bank A/c				7,200
	(Being the new bill duly honoured by payment)

Dr.	A’s A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Bill payable A/c		10,000		By Purchases A/c		10,000
	To Bank A/c		1,800		By Input CGST A/c		900
	To Bank A/c		3,000		By Input SGST A/c		900
	To Bill payable A/c		7,000		By bills payable A/c		10,000
					By Interest A/c		200

			22,000				22,000