Question No 22 Chapter No 13 – D.K Goal 11 Class

Question No 22 Chapter No 13

Question No 22 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

Insolvency of the Acceptor

22. A sells goods for Rs 8,000 to B on Jan 1, 2017 and on the same date draws a bill for 3 months on the latter for the amount. B accepts it and retunes it to A, who discounts it with his banker for Rs 7,850. on the date, due date the bill is dishonoured. Noting charges of Rs 150 were paid by the bank. B then pays Rs 3,000 in cash and accepts a new bill at three months for Rs 5,350. Before maturity, B became insolvent and a final dividend of 50 paise in the Rs was received. Give journal entries to record this transaction in the books of A and B.

The solution of Question No 22 Chapter No 13: –

In the books of A
Date   Particulars
L.F. Debit Credit
2018          
Jan.1 B A/c Dr.   8,000  
  To Sale A/c       8,000
  (Being goods sold to B.)        
           
Jan.1 Bill Receivable A/c Dr.   8,000  
  To B A/c       8,000
  (Being three bills drew on B and acceptance received from him.)        
           
Jan.1 Bank A/c Dr.   7,850  
  Discount A/c Dr.   150  
  To Bill Receivable A/c       8,000
  (Being bill discounted from the bank)        
           
Apr.04 Bill Receivable A/c Dr.   8,000  
  Noting Charges A/c Dr.   150  
  To Bank A/c       8,150
  (Being bill dishonoured and noting charges )        
           
Apr.04 Cash A/c Dr.   3,000  
  To B A/c       3,000
  (Being cash received from B)        
           
Apr.04 Bill Receivable A/c Dr.   5,350  
  To B A/c       5,350
  (Being the third bill was dishonoured )        
           
Apr.04 Cash A/c Dr.   3,264  
  Bad debts A/c Dr.   4,896  
  To Bill Receivable A/c       5,350
  (Being the third bill was dishonoured )        
         
In the books of B
Date   Particulars
L.F. Debit Credit
2018          
Jan.1 Purchases A/c Dr.   8,000  
  To A A/c       8,000
  (Being purchases goods from A)        
           
Jan.1 A A/c Dr.   8,000  
  To Bill Payable A/c       8,000
  (Being three bills drew by Satish acceptance by us.)        
           
Apr.04 Bill Payable A/c Dr.   8,000  
  To A A/c       8,000
  (Being cash paid to Amit)        
           
Apr.04 A A/c Dr.   3,000  
  To Cash A/c       3,000
  (Being cash paid to A)        
           
Apr.04 A A/c Dr.   5,350  
  To Bill Payable A/c       5,350
  (Being purchases goods from A.)        
           
Dec.07 Bill Payable A/c (iii) Dr.   5,350  
  To Cash A/c       3,264
  To Deficiency A/c       4,896
  (Being bill dishonoured and paid 40% in cash )        
         

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

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ISC Accounts 11 20 Image min 197x300 - Question No 22 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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