Question No 22 Chapter No 14 – Class 11 Unimax

Question No 22 Chapter No 14 – Class 11 Unimax
Question No 22 Chapter No 14 – Class 11 Unimax

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.

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

Read out the full article to know the meaning of Cash Book

Bill of exchange (BOE): Meaning and Examples

Also, Check out the same article in Hindi from the following link

Bill of exchange (BOE): Meaning and Examples

Also, Check out the solved question of all Chapters: –

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Part-I

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Students may choose only one part from the Part II and Part III

Part-II

  • Chapter No. 15 – Financial Statements (Without Adjustments)
  • Chapter No. 16 – Financial Statements (With Adjustments)
  • Chapter No. 17 – Accounts from Incomplete Records –  Single Entry System

Part-III

  • Chapter No. 18 – Introduction to Computers and Accounting information System
  • Chapter No. 19 – Computerised Accounting
  • Chapter No. 20 – Accounting Software: Tally 
  • Chapter No. 21 – Data Base System
  • Chapter No. 22 – Concept of Entity and Relationship 

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