Question No 32 Chapter No 14 – Class 11 Unimax

32. X for mutual and temporary accommodation of himself and Y, draws upon the latter a bill of exchange at the three months for ₹ 3,000 dated 1 January Y accepts the bill and sends it to X. on 4th January. X discounts the bill immediately at his bank, the rate of discount being 6% per annum and hands over half the proceeds to Y. Y for a similar purpose and at the same time, draws a bill at three on X for ₹ 1,800. X accepts the bill. Y discounted the bill at 6% per annum and hands over half the proceeds to X. Y become insolvent on 31 march and as such fails to meet his acceptance on maturity. On 30 June, a first and final dividend of 25 paisa in a rupee was paid out his estate in settlement of his dues. Write up the journal entries in X’s books and draw up Y’s account in X’s Ledger, assuming were shared equally by X and Y.

Table of Contents

The solution of Question No 32 Chapter No 14 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

The solution of Question No 32 Chapter No 14 – UNIMAX Class 11

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

Jan. 1	Bill receivable A/c	Dr.		3,000
	To Y’s A/c				3,000
	(Being acceptance of bill received from Y for mutual accommodation for 3 months)

Jan. 4	Bank A/c	Dr.		2,955
	Discount A/c	Dr.		45
	To Bills receivable A/c				3,000
	(Being bill discounted with bank @ 6% p.a.)

Jan. 4	Y’s A/c	Dr.		1,500
	To Cash A/c				1,477.50
	To Discount A/c				22,50
	(Being ½ amount of bill remitted to Y with discount)

Jan. 4	Y’s A/c	Dr.		1,800
	To Bills payable A/c				1,800
	(Being acceptance of bill given to Y mutual accommodation)

Jan. 4	Cash A/c	Dr.		886,50
	Discount A/c	Dr.		13.50
	To Y’s A/c				900
	(Being ½ amount of bill received from Y & Discount allowed to him)

Apr. 3	Y’s A/c	Dr.		3,000
	To Y’s A/c				3,000
	(Being bill not on due date by X)

Apr. 7	Bill payable A/c	Dr.		1,800
	To Cash A/c				1,800
	(Being payment of bill made on due date)

June 30	Cash A/c	Dr.		600
	Bad debts A/c	Dr.		1,800
	To Y’s A/c (1,500+900)				2,400
	(Being Y become insolvent & only 25% amount received from his estate)

Dr.	Y’s A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
Jan. 4	To cash A/c		1,477.50	Jan. 1	By Bill receivable A/c		3,000
Jan. 4	To Discount A/c		22.50	Jan. 4	By Cash A/c		88.50
Jan. 4	To Bill payable A/c		1,800	Jan. 4	By Discount A/c		13.50
Apr. 3	To Bank A/c		3,000	June 30	By Cash A/c		600
				June 30	By Bad Debts A/c		1,800

			6,300				6,300

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

Jan. 1	X’s A/c	Dr.		3,000
	To Bill payable A/c				3,000
	(Being acceptance of bill given to X mutual accommodation)

Jan. 4	Cash A/c	Dr.		1,477.50
	Discount A/c	Dr.		22.50
	To X’s A/c				1,500
	(Being ½ amount of bill received from X)

Jan. 4	Bills receivable A/c	Dr.		1,800
	To X’s A/c				1,800
	(Being acceptance of bill received from X mutual accommodation)

Jan. 4	Bank A/c	Dr.		1,773
	Discount A/c	Dr.		27
	To Bills Receivable				1,800
	(Being bill discounted with bank @6% p.a.)

Jan. 4	X’s A/c	Dr.		900
	To Cash A/c				886.50
	To Discount A/c				13.50
	(Being half amount of bill remitted to X with discount)

Apr. 3	Bills Payable A/c			3,000
	To X’s A/c				3,000
	(Being payment of bill not met due to insolvency)

June 30	X’s A/c (1,500+900)	Dr.		2,400
	To Cash A/c				600
	To Deficiency A/c				1,800
	(Being insolvent and only 25% amount paid to X)

Dr.	X’s A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
Jan. 1	To Bills payable A/c		3,000	Jan. 4	By Cash A/c		1,477.50
Jan. 4	To Cash A/c		886.50	Jan. 4	By Discount A/c		22.50
Jan. 4	To Discount A/c		13.50	Jan. 4	By Bill receivable A/c		1,800
June 30	To Cash A/c		600	Apr. 3	By Bill payable A/c		3,000
June 30	To Deficiency A/c		1,800

			6,300				6,300

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

Bill of exchange (BOE): Meaning and Examples

Also, Check out the same article in Hindi from the following link

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

Advertisement-X

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

Check out T.S. Grewal +1 Book 2019 @ Oficial Website of Sultan Chand Publication