Question No 26 Chapter No 13

Question No 26 Chapter No 13

Insolvency of the Acceptor

26. On 1st Feb., 2017. A sold goods to B for Rs 1,50,000 received Rs 50,000 in cash and drew two bill, first for Rs 60,000 and second for Rs 40,000 of there months each. Both the bills are duly acceptance by B. first bill was discounted from bank @10% p.a. and second bill was endorsed to C in settlement of his A/c of Rs 40,400. on the due date of these bills, both bills were dishonoured. Bank has paid Rs 100 and C has paid Rs 75 as noting charges.
B paid Rs 25,000 and noting charges in cash and accepted another bill for the balance at two months. The interest on the balance @15% p.a. was paid in cash. The new bill is immediately endorsed to D
On the due date of the new bill, B became bankrupt and only 20 paise in the Rs is realized from his estate.

The solution of Question No 26 Chapter No 13: –

In the books of A
Date  Particulars
L.F.DebitCredit
2018     
Feb.1Cash A/cDr. 50,000 
 B A/cDr. 1,00,000 
 To Sale A/c   1,50,000
 (Being goods sold to B and paid in cash)    
      
Feb.1Bill receivable A/c (i)Dr. 60,000 
 Bill receivable A/c (ii)Dr. 40,000 
 To B A/c   1,00,000
 (Being two bill drawn on B)    
      
Feb.1Bank A/cDr. 54,000 
 Discount A/cDr. 6,000 
 To Bill Receivable A/c (i)   60,000
 (Being bill discounted from bank)    
      
Feb.1C A/cDr. 40,000 
 Discount A/cDr. 400 
 To Bill Receivable A/c (ii)   40,400
 (Being second bill was to endorsed to C)    
      
May.4Bank A/cDr. 60,100 
 To Bill Receivable (i) A/c   60,000
 To Noting charges A/c   100
 (Being first bill dishonoured and paid 100 as noting charges)    
      
May.4C A/cDr. 40,075 
 To Bill Receivable (ii) A/c   40,000
 To Noting charges A/c   75
 (Being second bill dishonoured and paid 75 as noting charges)    
      
May.4Cash A/cDr. 25,175 
 To B A/c   25,175
 (Being b paid cash and noting charges)    
      
May.4Cash A/cDr. 1,875 
 To Interest A/c   1,875
 (Being interest charged on the bill paid by B )    
      
May.4Bill Receivable A/cDr. 75,000 
 To Bill Receivable A/c (iii)   75,000
 (Being bill drawn on B including interest)    
      
May.4Bill Receivable A/c (iii)Dr. 75,000 
 To D A/c   75,000
 (Being bill endorsed to D)    
      
Aug.7Cash A/cDr. 15,000 
 Bad debts A/cDr. 60,000 
 To Bill Receivable A/c   75,000
 (Being bill dishonoured and 20% received 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

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

ISC Accounts 11 20 Image min 197x300 - Question No 26 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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