Question No 25 Chapter No 13

Question No 25 Chapter No 13

Insolvency of the Acceptor

25. Sharma owes Gupta Rs 4,20,000 on 1st January 2018 Sharma accepted a bill for 3 months for Rs 4,00,000 in full settlement. On the same Gupta discounted the bill from the bank at 6% per annum. Before the due date, Sharma became bankrupt and Gupta received the first and final dividend of 20 paise in Rs. Pass journal entries in the books of the drawer. Also, prepare the drawee’s account in the book of the drawer.

The solution of Question No 25 Chapter No 13: –

In the books of Gupta
Date  Particulars
Jan.1Bill Receivable A/cDr. 4,00,000 
 Discount Allowed A/cDr. 20,000 
 To Raju A/c   4,20,000
 (Being bill drawn on Gupta and allowed him discount)    
Jan.1Bank A/cDr. 3,76,000 
 Discount A/cDr. 24,000 
 To Bill Receivable A/c   4,00,000
 (Being Bill discounted from bank)    
 Bill Receivable A/cDr. 4,20,000 
 To Bank A/c   4,20,000
 (Being bill dishonoured )    
 Cash A/cDr. 84,000 
 Bad debts A/cDr. 3,60,000 
 To Bank A/c   4,20,000
 (Being bill dishonoured and 20% received in cash)    
In the books of Sharma
Date  Particulars
Jan.1Gupta A/cDr. 4,20,000 
 To Discount received A/c   20,000
 To Bill Payable A/c   4,00,000
 (Being bill drawn by Gupta.)    
 Bill Payable A/cDr. 4,20,000 
 To Cash A/c   84,000
 To Deficiency A/c   3,36,000
 (Being bill dishonoured and 20% paid 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 25 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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