# Question No 37 Chapter No 13 – D.K Goal 11 Class

Question No 37 Chapter No 13

Q. 37. On 1st Jul y, 2017 X sold goods to Y valued 40,000, taking therefore a bill at 3 months. On 1st August, 2017 X discounted this bill @ 15% p.a. with his banker. At maturity the bill was return ed by the bankers dishonoured with 200 as expenses. Y paid 10,000 and expenses in cash and gave to X another bill at 2 months for 30,000 plus 18% p.a. interest, but before maturity Y becomes bankrupt and paid his creditors 75 paise in the rupee. Make necessary entries in X’s Journal.

## The solution of Question No 37 Chapter No 13: –

 In the books of X Date Particulars L.F. Debit Credit 2017 Jul.1 Y A/c Dr. 40,000 To Sale A/c 40,000 (Being good sold to Y) Jul.1 Bill Receivable A/c Dr. 40,000 To Y A/c 40,000 (Being interest payable for 3 months) Aug.1 Bank A/c Dr. 39,000 Discount A/c Dr. 1,000 To Bill Receivable A/c 40,000 (Being bill discount with bank at 15% discount ) Sep.4 Y A/c Dr. 40,200 To Bill Payable A/c 40,000 To Noting Charges A/c 200 (Being bill dishonoured and bank charged Noting charges ) Sep.4 Cash A/c Dr. 10,200 To Y A/c 10,000 To Noting Charges A/c 200 (Being cash received from Y) Sep.4 Bill Receivable A/c Dr. 30,900 To Y A/c 30,000 To Interest A/c 900 (Being bill drawn for 3 months) Nov.7 Cash A/c Dr. 23,175 Bad debts A/c Dr. 7,725 To Bill Receivable A/c 30,900 (Being 75% cash received from Y and 25% is bad debts )

Bills Payable Book | Subsidiary Books | Examples

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## D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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