Question No 25 Chapter No 13 – D.K Goal 11 Class

Question No 25 Chapter No 13

Question No 25 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

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
L.F. Debit Credit
2018          
Jan.1 Bill Receivable A/c Dr.   4,00,000  
  Discount Allowed A/c Dr.   20,000  
  To Raju A/c       4,20,000
  (Being bill drawn on Gupta and allowed him discount)        
           
Jan.1 Bank A/c Dr.   3,76,000  
  Discount A/c Dr.   24,000  
  To Bill Receivable A/c       4,00,000
  (Being Bill discounted from bank)        
           
  Bill Receivable A/c Dr.   4,20,000  
  To Bank A/c       4,20,000
  (Being bill dishonoured )        
           
  Cash A/c Dr.   84,000  
  Bad debts A/c Dr.   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
L.F. Debit Credit
2018          
Jan.1 Gupta A/c Dr.   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/c Dr.   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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