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

Q-29 - CH-13 - D.K Goal +1 Book 2020 - Solution

Question No 29 Chapter No 13

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

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