Question No 38 Chapter No 13

Question No 38 Chapter No 13

Additional Question

Q. 38. A draws on B a bill of exchange for t 1,00,000 on January 1, payable after 3 months from January 1 which B accepted. On January 4, A discounted the bill his banker at 18% p.a. B failed to meet the bill on due date and the bill was retunied to A with noting charges 200 debited to him by the bank. A received a new bill for bill value plus noting charges from B payable after 2 months. However, only 40% of the amount claimed could be recovered by A on June, 8 as B was declared insolvent on that day.
Pass Journal entries in the books of A for the above transactions.

The solution of Question No 38 Chapter No 13: –

In the books of A
Date  Particulars
Jan.1Bill Receivable A/cDr. 1,00,000 
 To B A/c   1,00,000
 (Being bill discount with the bank at 15% discount )    
Jan.4Bank A/cDr. 95,500 
 Discount A/cDr. 4,500 
 To Bill Receivable A/c   1,00,000
 (Being bill dishonored and bank charged Noting charges )    
Mar.4B A/cDr. 1,00,200 
 To Cash A/c   1,00,000
 To Noting Charges A/c   200
 (Being bill dishonoured and bank charged Noting charges )    
Mar.4Bill Receivable A/cDr. 1,00,200 
 To B A/c   1,00,200
 (Being bill drawn for 3 months)    
Nov.7Cash A/cDr. 40,080 
 Bad debts A/cDr. 60,120 
 To Bill Receivable A/c   1,00,200
 (Being 40% cash received from Y and 60% is bad debts )    

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

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

ISC Accounts 11 20 Image min 197x300 - Question No 38 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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