Question No 26 Chapter No 13 – D.K Goal 11 Class

Question No 26 Chapter No 13

Question No 26 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

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. Debit Credit
2018          
Feb.1 Cash A/c Dr.   50,000  
  B A/c Dr.   1,00,000  
  To Sale A/c       1,50,000
  (Being goods sold to B and paid in cash)        
           
Feb.1 Bill 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.1 Bank A/c Dr.   54,000  
  Discount A/c Dr.   6,000  
  To Bill Receivable A/c (i)       60,000
  (Being bill discounted from bank)        
           
Feb.1 C A/c Dr.   40,000  
  Discount A/c Dr.   400  
  To Bill Receivable A/c (ii)       40,400
  (Being second bill was to endorsed to C)        
           
May.4 Bank A/c Dr.   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.4 C A/c Dr.   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.4 Cash A/c Dr.   25,175  
  To B A/c       25,175
  (Being b paid cash and noting charges)        
           
May.4 Cash A/c Dr.   1,875  
  To Interest A/c       1,875
  (Being interest charged on the bill paid by B )        
           
May.4 Bill Receivable A/c Dr.   75,000  
  To Bill Receivable A/c (iii)       75,000
  (Being bill drawn on B including interest)        
           
May.4 Bill Receivable A/c (iii) Dr.   75,000  
  To D A/c       75,000
  (Being bill endorsed to D)        
           
Aug.7 Cash A/c Dr.   15,000  
  Bad debts A/c Dr.   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

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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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