Question No 27 Chapter No 14 – Class 11 Unimax

Question No 27 Chapter No 14 – Class 11 Unimax
Question No 27 Chapter No 14 – Class 11 Unimax

Question No 27 Chapter No 14 – Class 11 Unimax

27. Shubham draws on Rajendra a bill for ₹ 45,000 on 1st June, 2019 for 3 months. Rajendra accepts the bill and sends it to Shubham who gets it discounted for ₹ 44,100. Shubham immediately remits ₹ 14,700 to Rajendra. On the due date Shubham, being unable to remit the amount due accepts a bill for 63,000 for three months which is discounted by Rajendra for ₹ 61,650. Rajendra sends ₹ 11,100 to Shubham. On the due date Shubham become insolvent, his estate paying forty paise in the rupee. Given journal entries in the books of Shubham and Rajendra.

The solution of Question No 27 Chapter No 14 – UNIMAX Class 11

Journal for Mr. ‘Shubham’ (Drawer)
Date Particulars
L.F. Debit Credit
2019          
June 1 Bill receivable A/c Dr.   45,000  
  To Rajendra’s A/c       45,000
  (Being acceptance of bill received from Rajendra for mutual accommodation)      
           
June 1 Bank A/c Dr.   44,100  
  Discount A/c Dr.   900  
  To Bills receivable A/c       45,000
  (Being bill discounted with bank)      
         
June 1 Rajendra’s A/c Dr.   15,000  
  To Cash A/c     14,700
  To Discount A/c     300
  (Being a part of bill remitted to Rajendra immediately)      
         
Sept. 4 Rajendra’s A/c Dr.   63,000  
  To Bills payable A/c       63,000
  (Being acceptance of bill given to Rajendra)        
           
Sept. 4 Cash A/c Dr.   11,100  
  Discount A/c Dr.   900  
  To Rajendra’s A/c       12,000
  (Being cash received from Rajendra and discount allowed)        
           
Dec. 7 Bill payable A/c Dr.   63,000  
  To Rajendra’s A/c       63,000
  (Being bill not met on due date)        
           
Dec. 7 Rajendra’s A/c Dr.   42,000  
  To cash A/c       16,800
  To Deficiency A/c       25,200
  (Being insolvent, only 40% amount paid to Rajendra)      

 

Journal for Mr. ‘Rajendra’ (Drawee)
Date Particulars
L.F. Debit Credit
2019          
June 1 Shubham A/c Dr.   45,000  
  To Bill payable A/c       45,000
  (Being acceptance of bill given to Shubham for 3 months)      
           
Nov. 3 Cash A/c Dr.   14,700  
  Discount A/c Dr.   300  
  To Shubham A/c       15,000
  (Being cash received from Shubham and discount allowed)      
         
Sept. 4 Bills payable A/c Dr.   45,000  
  To Cash A/c     45,000
  (Being payment of bill made on due date)      
         
Sept. 4 Bills payable A/c Dr.   63,000  
  To Shubham A/c       63,000
  (Being acceptance of bill received from Shubham)        
           
Sept. 4 Bank A/c Dr.   61,650  
  Discount A/c Dr.   1,350  
  To Bill payable A/c       63,000
  (Being bill discounted with bank)        
           
Sept. 4 Shubham A/c Dr.   12,000  
  To Cash A/c       11,100
  To Discount A/c       900
  (Being cash paid to Shubham)        
           
Dec. 7 Shubham A/c Dr.   63,000  
  To Bank A/c       63,000
  (Being bill not met on due date)        
           
Dec. 7 Cash A/c Dr.     16,800  
  Bad debts A/c Dr.   25,200  
  To Shubham (39,000+12,000) A/c       42,000
  (Being Shubham become insolvent any only 40% amount received from him)      

Working Note:

(1) As soon as one party become insolvent after making dishonoured entry it should be found as to how much amount is due by Shubham to Rajendra.

(2) Discounting charges of second bill have been apportioned in the ratio in which Shubham & Rajendra shared the proceeds of second bill i.e. 2:1 shown as follows:

Total proceeds received of second bill = ₹ 61,650

Amount paid on behalf of partners for 1st bill

  Shubham Rajendra
  30,000 15,000
Balance (61,650-45,000) 16,650, distributed as 11,100 5,550
  41,100 20,550
Ratio in which proceeds of second bill shared 2:1    
Discounting charges of second bill to b shared as 900 450

Read out the full article to know the meaning of Cash Book

Bill of exchange (BOE): Meaning and Examples

Also, Check out the same article in Hindi from the following link

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Bill of exchange (BOE): Meaning and Examples

Also, Check out the solved question of all Chapters: –

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Part-I

Students may choose only one part from the Part II and Part III

Part-II

  • Chapter No. 15 – Financial Statements (Without Adjustments)
  • Chapter No. 16 – Financial Statements (With Adjustments)
  • Chapter No. 17 – Accounts from Incomplete Records –  Single Entry System

Part-III

  • Chapter No. 18 – Introduction to Computers and Accounting information System
  • Chapter No. 19 – Computerised Accounting
  • Chapter No. 20 – Accounting Software: Tally 
  • Chapter No. 21 – Data Base System
  • Chapter No. 22 – Concept of Entity and Relationship 

Check out T.S. Grewal +1 Book 2019 @ Oficial Website of Sultan Chand Publication

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