Question No 21 Chapter No 13 – D.K Goal 11 Class

Question No 21 Chapter No 13

Question No 21 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

Insolvency of the Acceptor

21. On July 1,2017 Amita draws a b on Ramlakhan for Rs 10,000 payable after three months for goods sold of the same amount. Amita gets the bill discounted with her bank on August 4,2017 at a discount of 9% p.a. On due date bank returned the bill as dishonoured with the noting charges of Rs 50
Ramlakhan paid Rs 2,050 in cash and requested to drew another bill on him for the balance amount for 2 months with interest with the interest @12% p.a. which Amita did.
Before due date Ramlakhan become insolvent and his estate paid 40% as first and final instalment

The solution of Question No 21 Chapter No 13: –

In the books of Amita
Date   Particulars
L.F. Debit Credit
2018          
Jul.1 Bill Receivable A/c Dr.   10,000  
  To Ramlakhan A/c       10,000
  (Being bill drawn on Ramlakhan.)        
           
Aug.04 Bank A/c Dr.   9,850  
  Discount A/c Dr.   150  
  To B A/c       10,000
  (Being three bills drew on B and acceptance received from him.)        
           
Oct.04 Bill Receivable A/c Dr.   10,000  
  Noting Charges A/c Dr.   50  
  To Bank A/c       10,050
  (Being bill dishonoured )        
           
Oct.04 Cash A/c Dr.   2,050  
  To Ramlakhan A/c       2,050
  (Being cash received from Ramlakhan)        
           
Oct.04 Ramlakhan A/c Dr.   160  
  To Interest A/c       160
  (Being interest charged on bill)        
           
Dec.07 Cash A/c Dr.   3,264  
  Bad debts A/c Dr.   4,896  
  To Bill Receivable A/c       8,160
  (Being third bill was dishonoured )        
         
In the books of Ramlakhan
Date   Particulars
L.F. Debit Credit
2018          
Jul.1 Amita A/c Dr.   10,000  
  To Bill Payable A/c       10,000
  (Being purchases goods from A)        
           
Oct.04 Bill Payable A/c Dr.   10,000  
  To Amita A/c       10,000
  (Being three bills drew by Satish acceptance by us.)        
           
Oct.04 Amita A/c Dr.   2,050  
  To Cash A/c       2,050
  (Being cash paid to Amit)        
           
Oct.04 Amita A/c Dr.   8,160  
  To Bill Payable A/c       8,160
  (Being cash paid to Amit)        
           
Dec.07 Bill Payable A/c (iii) Dr.   8,160  
  To Cash A/c       3,264
  To Deficiency A/c       4,896
  (Being bill dishonoured and paid 40% in cash )        
         

Working Note: –

Calculation of Discounting Charges

Discounting Charges = 10,000 9 X 2
100 12
             
  = Rs 150        

Calculation of interest Charges

Interest Charges = 8,000 12 X 2
100 12
             
  = Rs 160        

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 21 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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