Question No 23 Chapter No 13 – D.K Goal 11 Class

Question No 23 Chapter No 13

Question No 23 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

Insolvency of the Acceptor

23. On 1st August,2017 Pradeep drew a bill on Raju for Rs 75,000 for 3 months. This was for the amount which Raju owed to Pradeep. On Aug. 4,2017 Pradeep discounted the same at 14% p.a. from Bank. On November 12,2017 Raju requested Pradeep for renewal of the bill. Pradeep agreed on the condition that Rs 35000 be paid and that for the remaining amount Raju should accept a new bill for 3 months and that for the remaining amount Raju should accept a new bill for 3 months. These arrangements were duly carried out. The new bill was dishonoured on due date as Raju became insolvent. Pradeep received 40 paise in a Rs from Raju’s estate.
Show the entries in the books of both the parties

The solution of Question No 23 Chapter No 13: –

In the books of Pradeep
Date   Particulars
L.F. Debit Credit
2018          
Aug.1 Bill Receivable A/c Dr.   75,000  
  To Raju A/c       75,000
  (Being goods sold to B.)        
           
Aug.4 Bank A/c Dr.   64,500  
  Discount A/c Dr.   10,500  
  To Bill Receivable A/c       75,000
  (Being Bill discounted from bank)        
           
Nov.1 Bill Receivable A/c Dr.   75,000  
  To Bank A/c       75,000
  (Being bill dishonoured )        
           
Nov.1 Bill Receivable A/c Dr.   35,000  
  To Bank A/c       35,000
  (Being cash received from Raju)        
           
Nov.1 Bill Receivable A/c Dr.   40,000  
  To Bank A/c       40,000
  (Being new bill drawn on him)        
           
Jan.07 Cash A/c Dr.   16,000  
  Bad debts A/c Dr.   24,000  
  To B A/c       40,000
  (Being bill dishonoured and 50% received in cash)        
         
In the books of Raju
Date   Particulars
L.F. Debit Credit
2018          
Aug.1 Bill Payable A/c Dr.   75,000  
  To Pradeep A/c       75,000
  (Being purchases goods from A)        
           
Nov.1 Bill Payable A/c Dr.   75,000  
  To Pradeep A/c       75,000
  (Being bill dishonoured)        
           
Nov.1 Pradeep A/c Dr.   75,000  
  To Cash A/c       75,000
  (Being cash paid to Pradeep)        
           
Nov.1 Bill Payable A/c Dr.   40,000  
  To Pradeep A/c       40,000
  (Being bill dishonoured)        
           
Jan.07 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

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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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