Question No 29 Chapter No 14 – Class 11 Unimax

29. A draws a bill for ₹ 3,000 and b accepts the same for the mutual accommodation of both of them to the extent of A 2/3 and B 1/3. A discount the same for ₹ 2,820 and remits 1/3 of proceeds to B. before the due date, B draws another bill for ₹ 4,200 on A in order to meet the first bill. The second bill is discounted for ₹ 4,080 with the help of which the first bill is met and ₹ 720 are remitted to A. before he due date of the second bill, A become bankrupt and B receives a dividend of 50 paise in a rupee in full settlement. Pass journal entries in the books of A and B.

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The solution of Question No 29 Chapter No 14 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

The solution of Question No 29 Chapter No 14 – UNIMAX Class 11

Journal for Mr. ‘X’ (Drawer)
Date	Particulars		L.F.	Debit	Credit

	Bill receivable A/c	Dr.		3,000
	To B’s A/c				3,000
	(Being acceptance of bill received from B for mutual accommodation)

	Bank A/c	Dr.		2,820
	Discount A/c	Dr.		180
	To Bills receivable A/c				3,000
	(Being bill discounted with bank)

	B’s A/c	Dr.		1,000
	To Cash A/c				940
	To Discount A/c				60
	(Being half the amount remitted)

Before Due date	B’s A/c	Dr.		4,200
	To Bills payable A/c				4,200
	(Being acceptance of bill given to B)

	Bank A/c	Dr.		720
	Discount A/c	Dr.		80
	To B’s A/c				800
	(Being cash received from B and discount allowed)

Before Due date	Bill payable A/c	Dr.		4,200
	To B’s A/c				4,200
	(Being insolvent & bill not met)

	B’s A/c (2,000+800)	Dr.		2,800
	To Cash A/c				1,400
	To Deficiency A/c				1,400
	(Being insolvent & only 50% paid to B)

Journal for Mr. ‘B’ (Drawee)
Date	Particulars		L.F.	Debit	Credit

	A’s A/c	Dr.		3,000
	To Bill payable A/c				3,000
	(Being acceptance of bill given to A)

	Cash A/c	Dr.		940
	Discount A/c	Dr.		60
	To A’s A/c				1,000
	(Being 1/3 amount of bill received from A with discount)

Before Due date	Bills receivable A/c	Dr.		4,200
	To A’s A/c				4,200
	(Being acceptance of bill received from A)

	Bank A/c	Dr.		4,080
	Discount A/c	Dr.		120
	To Bills receivable A/c				4,200
	(Being bill discounted with bank)

Due Date	Bills payable A/c	Dr.		3,000
	To Cash A/c				3,000
	(Being bill met on due date)

	A’s A/c	Dr.		800
	To Bank A/c				720
	To Discount A/c				80
	(Being cash paid to A)

	A’s A/c	Dr.		4,200
	To Bank A/c				4,200
	(Being bill not met on due date)

	Cash A/c	Dr.		1,400
	Bad debts A/c	Dr.		1,400
	To X’s (1,000+250) A/c				2,800
	(Being A become insolvent and only 50% amount of bill received from A)

Working Note:

(1) As soon as one party becomes insolvent after making dishonoured entry it should be found as to how much amount is due by A to B.

(2) Discounting charges of the second bill have been apportioned in the ratio in which X & Y shared the proceeds of the second bill i.e. 2:1 shown as follows:

Total proceeds received of the second bill

Amount paid on behalf of partners for 1st bill

	A	B
	2,000	1,000
Balance (₹ 4,080-3,000) 1,080, distributed as	720	360
	2,720	1,360
Ratio which proceeds of the second bill shared 2:1
Discounting charges of the second bill to be shared	80	80

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Bill of exchange (BOE): Meaning and Examples

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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

Chapter No. 1 – Introduction of Accounting
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and Transactions
Chapter No. 4 – Journal
Chapter No. 5 – Goods and Services Tax (GST): An Introduction
Chapter No. 6 – Ledger
Chapter No. 7 – Special Purpose Book – Cash Book
Chapter No. 8 – Other Subsidiary Books
Chapter No. 9 – Trial Balance
Chapter No. 10 – Rectification of Errors
Chapter No. 11 – Depreciation
Chapter No. 12 – Provision and Reserves
Chapter No. 13 – Bank Reconciliation Statement
Chapter No. 14 – Bills of Exchange

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

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