Question No 22 Chapter No 14 – Class 11 Unimax

Nikhil sold goods for ₹ 23,000 to Akhil on Dec. 1, 2019. He drew upon Akhil a bill of exchange for the same amount payable after 2 months. Akhil accepted the bill and sent it back to Nikhil. Nikhil discounted the bill immediately with his bank @ 12% p.a. On the due date Akhil dishonored the bill of exchange and the bank paid ₹ 100 as noting charges. Akhil requested Nikhil to drew a new bill upon him with interest @ 10% p.a. which he agreed. The new bill was payable after two months. A week before the maturity of the second bill Akhil requested Nikhil to cancel the second bill. He further requested to accept ₹ 10,000 in cash immediately and drew a third bill upon him including interest of ₹ 500. Nikhil agreed to Akhil request. The third bill was payable after one month. Akhil met the third bill on its maturity. Record the necessary journal entries in the books of Nikhil and Akhil and also prepare Akhil account in the books of Nikhil and Nikhil account in the books of Akhil.

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The solution of Question No 22 Chapter No 14 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

The solution of Question No 22 Chapter No 14 – UNIMAX Class 11

Journal for Mr. ‘Nikhil’ (Drawer)
Date	Particulars		L.F.	Debit	Credit
2020
Dec. 1	Akhil’s A/c	Dr.		23,000
	To Sales A/c				23,000
	(Being goods sold to Akhil on credit)

Dec. 1	Bill receivable A/c	Dr.		23,000
	To Akhil A/c				23,000
	(Being a bill for two months drawn and accepted)

Dec. 1	Bank A/c	Dr.		22,540
	Discount A/c	Dr.		460
	To Bill receivable A/c				23,000
	(Being bill discounted from bank @ 12% p.a.)
2019
Feb. 4	Akhil A/c	Dr.		23,100
	To Bank A/c				23,100
	(Being the bill dishonoured on due date and bank paid 100 as noting charges)

Feb. 4	Akhil A/c	Dr.		385
	To Interest A/c				385
	(Being interest @ 10% for two months due from Akhil)

Feb. 4	Bill receivable A/c	]Dr.		23,485
	To Akhil A/c				23,485
	(Being the second bill for two months drew and accepted)

Mar. 31	Akhil A/c	Dr.		23,485
	To Bill receivable A/c (2)				23,485
	(Being the second bill cancelled on request)

Mar. 31	Cash A/c	Dr.		10,000
	To Akhil A/c				10,000
	(Being cash received from Akhil)

Mar. 31	Akhil A/c	Dr.		500
	To Interest A/c				500
	(Being interest as ₹ 500 for third bill due date from Akhil)

Mar. 31	Bill receivable A/c	Dr.		13,985
	To Akhil A/c				13,985
	(Being the third bill for one month drawn and accepted)

May 3	Cash A/c	Dr.		13,985
	To Bill receivable A/c				13,985
	(Being the third bill met on due date)

Dr.	Akhil’s A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
Dec.1	To Sales A/c		23,000	Dec.1	By Bill receivable A/c		23,000
Feb. 4	To Bank A/c		23,100	Feb. 4	By Bill receivable A/c		23,485
Feb. 4	To Interest A/c		385	Feb. 4	By Cash A/c		10,000
Mar. 31	To Interest A/c		500	Mar. 31	By Bill receivable A/c		13,985
Mar. 31	To Bills receivable A/c		23,485

			70,470				70,470

Journal for Mr. ‘Akhil’ (Drawee)
Date	Particulars		L.F.	Debit	Credit
2019
Dec. 1	Purchases A/c	Dr.		23,000
	To Nikhil A/c				23,000
	(Being the goods purchased on credit)

Dec. 1	Nikhil’s A/c	Dr.		23,000
	To Bill payable A/c (1)				23,000
	(Being a bill for two months accepted and returned)
2020
Feb. 4	Bill payable A/c (1)	Dr.		23,000
	Noting charges A/c	Dr.		100
	To Nikhil A/c				23,100
	(Being the bill dishonoured and ₹ 100 paid as noting charges)

Feb. 4	Interest A/c	Dr.		385
	To Nikhil A/c				385
	(Being the interest @ 10% due to Nikhil)

Feb. 4	Nikhil A/c	Dr.		23,485
	To Bill payable A/c (2)				23,485
	(Being the second bill for two months accepted and returned)

Mar. 31	Bills payable A/c (2)	Dr.		23,485
	To Nikhil A/c				23,485
	(Being the bill cancelled on request)

Mar. 31	Nikhil A/c	Dr.		10,000
	To Bank A/c				10,000
	(Being cash paid to Mr. Nikhil)

Mar. 31	Interest A/c	Dr.		500
	To Nikhil A/c				500
	(Being interest due to Nikhil for another bill)

Mar. 31	Nikhil A/c	Dr.		13,985
	To Bills payable A/c (3)				13,985
	(Being a third bill for one month accepted and returned)

May 3	Bills payable A/c (3)	Dr.		13,985
	To Cash A/c				13,985
	(Being own acceptance met on due date)

Dr.	Nikhil’s A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
Dec. 1	To Bills payable A/c (1)		23,000	Dec. 1	By Purchases A/c		23,000
Feb. 4	To Bill payable A/c (2)		23,485	Feb. 4	By Bill payable A/c (1)		23,000
Mar. 31	To Cash A/c		10,000	Feb. 4	By Noting charges A/c		100
Mar. 31	To Bill payable A/c (3)		13,985	Feb. 4	By Interest A/c		385
				Mar. 31	By Bills payable A/c		23,485
				Mar. 31	By Interest A/c		500

			70,470				70,470