Question No 29 Chapter No 13 – D.K Goal 11 Class

Question No 29 Chapter No 13

Question No 29 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

Insolvency of the Acceptor

29. On 15th January 2018, X sold goods to Y for Rs 50,000 charging IGST @ 12%. Y immediately paid Rs 6,000 in cash and acceptance two bills of equal amount, the first for one month and the second for two months. The first bill was met on due date but on the due date of second bill, Y requested that the bill be renewed for a further period of two months. X agreed provided that interest at 15% p.a. was paid immediately in cash. Y agreed to this. The second bill was met on the due
Give journal entries in the books of X and Y.

The solution of Question No 29 Chapter No 13: –

In the books of X
Date   Particulars
L.F. Debit Credit
2018          
Jan.15 Y A/c Dr.   50,000  
  Cash A/c Dr.   6,000  
  To Sale A/c       50,000
  To Output IGST A/c       6,000
  (Being goods sold to B and plus IGST @12%)        
           
Jan.15 Bill receivable A/c(i) Dr.   25,000  
  Bill receivable A/c(ii) Dr.   25,000  
  To Y A/c       50,000
  (Being two bill drawn on Y)        
           
Feb.18 Cash A/c Dr.   25,000  
  To Bill Receivable A/c       25,000
  (Being bill dishonored)        
           
Mar.18 Y A/c Dr.   25,000  
  To Bill Receivable A/c       25,000
  (Being bill dishonored)        
           
Mar.18 Cash A/c Dr.   625  
  To Interest A/c       625
  (Being interest received )        
           
Mar.18 Bill Receivable A/c Dr.   25,000  
  To Y A/c       25,000
  (Being new bill drawn )        
           
Apr.21 Cash A/c Dr.   25,000  
  To Bill Receivable A/c       25,000
  (Being cash received)        
         
In the books of B
Date   Particulars
L.F. Debit Credit
2018          
Jan.15 Purchases A/c Dr.   50,000  
  Input IGST A/c Dr.   6,000  
  To Cash A/c       6,000
  To X A/c       50,000
  (Being purchased from X and plus IGST @12%.)        
           
Jan.15 X A/c Dr.   50,000  
  To Bill Payable A/c       25,000
  To Bill Payable A/c       25,000
  (Being two bill drawn by X)        
           
Feb.18 Bill Payable A/c Dr.   25,000  
  To Cash A/c       25,000
  (Being bill dishonored)        
           
Mar.18 Bill Payable A/c Dr.   25,000  
  To X A/c       25,000
  (Being new bill drawn plus interest )        
           
Mar.18 Interest A/c Dr.   625  
  To Cash A/c       625
  (Being interest paid)        
           
Mar.18 X A/c Dr.   25,000  
  To Bill Payable A/c       25,000
  (Being new bill drawn by X)        
           
Apr.21 Cash A/c Dr.   25,000  
  To Bill Payable A/c       25,000
  (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 29 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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