Question No 29 Chapter No 13

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.DebitCredit
2018     
Jan.15Y A/cDr. 50,000 
 Cash A/cDr. 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.15Bill 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.18Cash A/cDr. 25,000 
 To Bill Receivable A/c   25,000
 (Being bill dishonored)    
      
Mar.18Y A/cDr. 25,000 
 To Bill Receivable A/c   25,000
 (Being bill dishonored)    
      
Mar.18Cash A/cDr. 625 
 To Interest A/c   625
 (Being interest received )    
      
Mar.18Bill Receivable A/cDr. 25,000 
 To Y A/c   25,000
 (Being new bill drawn )    
      
Apr.21Cash A/cDr. 25,000 
 To Bill Receivable A/c   25,000
 (Being cash received)    
     
In the books of B
Date  Particulars
L.F.DebitCredit
2018     
Jan.15Purchases A/cDr. 50,000 
 Input IGST A/cDr. 6,000 
 To Cash A/c   6,000
 To X A/c   50,000
 (Being purchased from X and plus IGST @12%.)    
      
Jan.15X A/cDr. 50,000 
 To Bill Payable A/c   25,000
 To Bill Payable A/c   25,000
 (Being two bill drawn by X)    
      
Feb.18Bill Payable A/cDr. 25,000 
 To Cash A/c   25,000
 (Being bill dishonored)    
      
Mar.18Bill Payable A/cDr. 25,000 
 To X A/c   25,000
 (Being new bill drawn plus interest )    
      
Mar.18Interest A/cDr. 625 
 To Cash A/c   625
 (Being interest paid)    
      
Mar.18X A/cDr. 25,000 
 To Bill Payable A/c   25,000
 (Being new bill drawn by X)    
      
Apr.21Cash A/cDr. 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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