Question No 23 Chapter No 14 – Class 11 Unimax

23. Y purchased goods for ₹ 6,000 on 1st June,2019 from the X and on the same date accepted a bill payable after three months. 3 days later, X endorsed the bill to Z. On maturity, the bill was dishonored for non-payment and Z had to pay ₹ 50 as noting charges.
Three days after the dishonor of the bill of X made full payment to Z. 15 days after the dishonor of the bill, Y paid ₹ 2,000 to X and requested him to drew a second bill for the balance plus ₹ 90 for the amount of interest, payable after two months. X accepted the proposal and drew the bill on Y, which accepted by Y was duly met maturity.
Record the above transactions in the books of all the three parties.

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The solution of Question No 23 Chapter No 14 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

The solution of Question No 23 Chapter No 14 – UNIMAX Class 11

Journal for Mr. ‘X’ (Drawer)
Date	Particulars		L.F.	Debit	Credit
2020
June 1	Y’s A/c	Dr.		6,000
	To Sales A/c				6,000
	(Being goods sold on credit)

June 1	Bill receivable A/c	Dr.		6,000
	To Y’s A/c				6,000
	(Being a bill for 3 months drawn and accepted)

June 4	Z’s A/c	Dr.		6,000
	To Bill receivable A/c				6,000
	(Being bill endorsed and Mr. ‘Z’)

Sep 4	Y’s A/c	Dr.		6,050
	To ‘Z’ A/c				6,050
	(Being the bill dishonoured and ‘Z’ paid ₹ 50 as noting charges)

Sep. 7	Z’s A/c	Dr.		6,050
	To Cash A/c				6,050
	(Being payment made to creditor Mr. ‘Z’)

Sep. 19	Cash A/c	Dr.		2,000
	To Y’s A/c				2,000
	(Being cash received from Mr. ‘Y’)

Sep. 19	Bills receivable A/c (2)	Dr.		4,140
	To Y’s A/c				4,050
	To Interest A/c				90
	(Being the a new bill for 2 months with ₹ 90 as interest in clued in it drawn and accepted)

Nov. 22	Cash A/c	Dr.		4,140
	To Bill receivable A/c				4,140
	(Being the fourth bill met at maturity)

Journal for Mr. ‘Y’ (Drawee)
Date	Particulars		L.F.	Debit	Credit
2020
June 1	Purchases A/c	Dr.		6,000
	To X’s A/c				6,000
	(Being the goods purchased on credit from Mr. ‘X’)

June 1	X’s A/c	Dr.		6,000
	To Bill payable A/c				6,000
	(Being a bill for 3 months accepted and returned)

Sep. 4	Bills payable A/c	Dr.		6,000
	Nothing charges A/c	Dr.		50
	To X’s A/c				6,050
	(Being the bill dishonoured and ₹ 50 paid as noting charges)

Sep. 19	X’s A/c	Dr.		2,000
	To Cash A/c				2,000
	(Being cash paid to Mr. ‘X’)

Sep. 19	X’s A/c	Dr.		4,050
	Interest A/c	Dr.		90
	To Bill payable A/c				4,140
	(Being a new bill for 2 months with ₹ 90 as interest in clued in it accepted and returned to Mr. ‘X’)

Nov. 22	Bills payable A/c	Dr.		4,140
	To Cash A/c				4,140
	(Being own acceptance met at maturity)

Journal for Mr. ‘Z’ (Endorsee)
Date	Particulars		L.F.	Debit	Credit
2020
June 4	Bills payable A/c (1)	Dr.		6,000
	To X’s A/c				6,000
	(Being the bill received from Mr. X)

Sep. 4	X’s A/c	Dr.		6,050
	To Bills receivable A/c				6,000
	To Cash A/c				50
	(Being the bill dishonoured and ₹ 50 paid as noting charges)

Sep. 7	Cash A/c	Dr.		6,050
	To X’s A/c				6,050
	(Being cash received from Mr. ‘X’)