Question No 31 Chapter No 14 – Class 11 Unimax

Amarnath drew on Parker a bill of Exchange for ₹ 1,00,000 on 1st January payable after three month from 1^st January, which parker accepted. On 4th January, Amarnath discounted the bill with his bankers @ 18% p.a. Parker failed to meet the bill on due date and the bill was returned to Amarnath with bank charges of ₹ 200 debited to Him by the bank.
Amarnath claimed the bill value plus bank charges from Parker. However, only 40% of the amount claimed could be recovered by Amarnath on 8th April as Parke was declared insolvent.
Pass journal entries in the books of Amarnath and parker for the above transactions.

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The solution of Question No 31 Chapter No 14 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

The solution of Question No 31 Chapter No 14 – UNIMAX Class 11

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

Jan. 1	Bill receivable A/c	Dr.		1,00,000
	To Parker A/c				1,00,000
	(Being bill drawn for three months, accepted & retuned by Parker)

Jan. 4	Bank A/c	Dr.		95,500
	Discount A/c	Dr.		4,500
	To Bill receivable A/c				1,00,000
	(Being bill discounted with banker @ 18% p.a.)

Apr. 7	Parker A/c	Dr.		1,00,200
	To Bank A/c				1,00,200
	(Being bill not met on due date & Bank charges paid)

Apr. 8	Cash A/c	Dr.		40,080
	Bad debts A/c	Dr.		60,120
	To Parker a/c				1,00,200
	(Being Parker become insolvent & only 40% amount received from him)

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

Jan. 1	Amarnath A/c	Dr.		1,00,000
	To Bill payable A/c				1,00,000
	(Being acceptances of bill given to Amarnath)

Apr. 4	Bills payable A/c	Dr.		1,00,000
	Bank charges A/c	Dr.		200
	To Amarnath A/c				1,00,200
	(Being bill dishonoured on due date and bank charges paid)

Apr. 8	Amarnath A/c	Dr.		1,00,200
	To Cash A/c				40,080
	To Deficiency A/c				60,120
	(Being insolvent and only 40% amount paid to Amarnath in full settlement)

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

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

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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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