Question No 40 Chapter No 13

Question No 40 Chapter No 13

Additional Question

Q. 40. On 1st May, 2017, Kunal sold goods to Subhash invoiced at t60,000 and drew upon the latter two bills of exchange, one for 20,000 at two months and another for 40,000 at four months. Subhash accepted both the bills. On 4th May, 2017, Kunal got the first bill discounted with bank @12% per annum and endorsed the second bill in favour of his creditor Mohit. Subhash met the first bill for 20,000 on due date. Before the due date of the second bill, Subhash became insolvent and his estate paid only 60 paise in a f on 8th November, 2017. ·
Pass journal entries to record all the transactions in the books of Kunal and Subhash.

The solution of Question No 40 Chapter No 13: –

In the books of Kunal
Date  Particulars
May.1Subhash A/cDr. 60,000 
 To Sale A/c   60,000
 (Being bill drawn for 3 months)    
May.1Bill receivable A/c (i)Dr. 20,000 
 Bill receivable A/c (ii)Dr. 40,000 
 To Subhash A/c   60,000
 (Being two bills drawn on Subhash)    
May.4Bank A/cDr. 19,600 
 Discount A/cDr. 400 
 To Bill Receivable A/c   20,000
 (Being bill dishonored and bank charged Noting charges )    
May.4Mohit A/cDr. 40,000 
 To Bill receivable A/c (ii)   40,000
 (Being bill endorsed to Mohit)    
Sep.1Cash A/cDr. 24,000 
 Bad debts A/cDr. 16,000 
 To Bill receivable A/c   40,000
 (Being 60% cash received from Subhash and 40% is bad debts )    
In the books of Subhash
Date  Particulars
May.1Purchases A/cDr. 60,000 
 To Kunal A/c   60,000
 (Being purchases goods from Kunal)    
May.1Kunal A/cDr. 60,000 
 To Bill Payable A/c(i)   40,000
 To Bill Payable A/c(ii)   20,000
 (Being two bills drawn on Subhash)    
Jul.4Bill Payable A/c(i)Dr. 20,000 
 To Cash A/c   20,000
 (Being purchases goods from Kunal)    
Sep.1Bill Payable A/cDr. 40,000 
 To Cash A/c   24,000
 To Deficiency A/c   16,000
 (Being 60% cash given to Kunal and 40% 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

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ISC Accounts 11 20 Image min 197x300 - Question No 40 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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