Question No 28 Chapter No 14 – Class 11 Unimax

Posted by By Kuljeet Singh 13 Min Read December 30, 2022
Question No 28 Chapter No 14 – Class 11 Unimax
Question No 28 Chapter No 14 – Class 11 Unimax

Question No 28 Chapter No 14 – Class 11 Unimax

28. X draws on Y, for the mutual accommodation of both a bill for ₹ 2,000 on 1st February at 3 months. X discounts the bill for ₹ 1,960 and remits half the proceed to Y. On maturity, X is unable to send the amount due and therefore Y draws on X a bill for ₹ 2,500 which is duly accepted by X. Y discounts the bills for ₹ 2,400 and remits ₹ 200 to X. Before the bill is due for payment. X become insolvent. Later 30% dividend from his estate.
Give X’s account in Y’s account in X’s books.

The solution of Question No 28 Chapter No 14 – UNIMAX Class 11

Journal for Mr. ‘X’ (Drawer)
Date Particulars
 L.F. Debit Credit
           
Feb. 1 Bill receivable A/c Dr.   2,000  
  To Y’s A/c       2,000
  (Being acceptance of bill received from Y for mutual accommodation)      
           
Feb. 1 Bank A/c Dr.   1,960  
  Discount A/c Dr.   40  
  To Bills receivable A/c       2,000
  (Being bill discounted with bank)      
         
Feb.1 Y’s A/c Dr.   1,000  
  To Cash A/c     980
  To Discount A/c     20
  (Being half the amount remitted)      
         
May 4 Y’s A/c Dr.   2,500  
  To Bills payable A/c       2,500
  (Being acceptance of bill given to Y)        
           
May 4 Cash A/c Dr.   200  
  Discount A/c Dr.   50  
  To Y’s A/c       250
  (Being cash received from Y and discount allowed)        
           
Due date Bill payable A/c Dr.   2,500  
  To Y’s A/c       2,500
  (Being insolvent & bill not met)        
           
Before Due date Y’s A/c (1,000+250) Dr.   1,250  
  To cash A/c       375
  To Deficiency A/c       875
  (Being insolvent & only 30% paid to Y)      

 

Dr. Y’s A/c Cr.
Date Particulars
 J.F. Amount Date Particulars
 J.F. Amount
Feb. 1 To cash A/c   980 Feb. 1 By Bill receivable A/c   2,000
Feb. 1 To Discount A/c   20 Mar. 4 By Discount A/c   50
May 4 To Bill payable A/c   2,500 May 4 By Cash A/c   200
  To Cash A/c   375   By Bill Payable A/c   2,500
  To Deficiency A/c   875        
               
      4,750       4,750

 

Journal for Mr. ‘Y’ (Drawee)
Date Particulars
 L.F. Debit Credit
           
Feb. 1 X’s A/c Dr.   2,000  
  To Bill payable A/c       2,000
  (Being acceptance of bill given to X for 3 months)      
           
Feb. 1 Cash A/c Dr.   980  
  Discount A/c Dr.   20  
  To X’s A/c       1,000
  (Being half the amount of bill received from X)      
         
May 4 Bills payable A/c Dr.   2,000  
  To Cash A/c     2,000
  (Being bill met on due date)      
         
May 4 Bills receivable A/c Dr.   2,500  
  To X’s A/c       2,500
  (Being acceptance of bill received from X)        
           
May 4 Bank A/c Dr.   2,400  
  Discount A/c Dr.   100  
  To Bills receivable A/c       2,500
  (Being bill discounted with bank)        
           
May 4 X’s A/c Dr.   250  
  To Cash A/c       200
  To Discount A/c       50
  (Being cash paid to X)        
           
Before Due date X’s A/c Dr.   2,500  
  To Bank A/c       250
  (Being bill not met on due date by X)        
           
Before Due date Cash A/c Dr.     375  
  Bad debts A/c Dr.   875  
  To X’s (1,000+250) A/c       1,250
  (Being ‘X’ become insolvent and only 30% amount received from him)      

 

Dr. X’s A/c Cr.
Date Particulars
 J.F. Amount Date Particulars
 J.F. Amount
Feb. 1 To Bills payable A/c   2,000 Feb. 1 By Bill receivable A/c   23,000
Mar. 4 To Discount A/c   50 Feb.  1 By Bill receivable A/c   23,485
May 4 To cash A/c   200 Mar. 4 By Cash A/c   10,000
  To Bank A/c   2,500   By Bill receivable A/c   13,985
               
               
      4,750       4,750

Working Note:

(i) As soon as one party become insolvent after making dishonoured entry it should be found as to how much amount is due by ‘X’ to ‘Y’ for which we should prepare X’s account in Y’s books and Y’s A/c in X’s book. Both will show the same amount with different balance (Dr. or Cr.)

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

Total proceeds received of second bill

Amount paid on behalf of partners for 1st bill

  X Y
  1,000 1,000
Balance (₹ 2,400-2,000) 400, distributed as 200 200
  1,200 1,200
Ratio which proceeds of second bill shared 1:1    
Discounting charges of second bill to be shared  50 50

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

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Bill of exchange (BOE): Meaning and Examples

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

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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