Question No 28 Chapter No 13

Question No 28 Chapter No 13

Insolvency of the Acceptor

28. On 1st February 2018, A sold goods to B for Rs 40,000 Charging CGST and SGST @9% each. B Rs 17,200 in cash and acceptance a three months bill for the balance. On the due date, B expressed his inability to meet the bill and offered Rs 12,000 in cash and To accept a new bill for one month for the balance plus interest at 18% p.a. A agrees to proposal. On the due date bill was duly honoured by B. pass entries ion the books of A and B.

The solution of Question No 28 Chapter No 13: –

In the books of A
Date  Particulars
L.F.DebitCredit
2018     
Feb.1B A/cDr. 30,000 
 Cash A/cDr. 17,200 
 To Sale A/c   40,000
 To Output CGST A/c   3,600
 To Output SGST A/c   3,600
 (Being goods sold to B and plus CGST and SGST @9%)    
      
Feb.1Bill receivable A/c Dr. 30,000 
 To B A/c   30,000
 (Being two bill drawn on B)    
      
May.4B A/cDr. 18,000 
 Cash A/cDr. 12,000 
 To Bill Receivable A/c   30,000
 (Being bill discounted from bank)    
      
May.4B A/cDr. 270 
 To Interest A/c   270
 (Being bill dishonoured )    
      
May.4Bill Receivable A/cDr. 18,270 
 To B A/c   18,270
 (Being new bill drawn plus interest )    
      
Jun.7Cash A/cDr. 18,270 
 To Bill Receivable (ii) A/c   18,270
 (Being cash received)    
     
In the books of B
Date  Particulars
L.F.DebitCredit
2018     
Feb.1Purchases A/cDr. 40,000 
 Input CGST A/cDr. 3,600 
 Input SGST A/c  3,600 
 To Cash A/c   17,200
 To A A/c   40,000
 (Being goods sold to B and plus CGST and SGST @9%)    
      
Feb.1A A/cDr. 30,000 
 To Bill Payable A/c   30,000
 (Being bill drawn by A)    
      
May.4Bill Payable A/cDr. 30,000 
 To Cash A/c   12,000
 To A A/c   18,000
 (Being bill discounted from bank)    
      
May.4A A/cDr. 18,270 
 To Bill Payable A/c   18,270
 (Being new bill drawn plus interest )    
      
Jun.7Bill Payable A/cDr. 18,270 
 To Cash A/c   18,270
 (Being cash received)    
     

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 28 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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