Question No 45 Chapter No 13

45. On 12-2-2018, X sold goods worth Rs 60,000 to Y. On 15-2-2015, X drew three bills of exchange worth Rs 30,000, Rs 20,000 and Rs 10,000 payable after three months, two months and one months, respectively. Y accepted all the bills and returned to X immediately. X discounted the first bill on 15-3-2018 @10% p.a. with his bank. He endorsed the second the second bill to Z, on 15-2-2018. he retained the third bill till maturity.
Y met the third bill on the due date but dishonoured the first and the second bills. Noting charges amounting to Rs 250 for each of these two bills were incurred. Y was declared insolvent and could pay only 50 paise in the Rs on 31-5-2018in full settlement.
Pass the journal entries in the books of X and Y.

## The solution of Question No 45 Chapter No 13: –

 In the books of X Date Particulars L.F. Debit Credit 2017 Feb.12 Y A/c Dr. 60,000 To Sale A/c 60,000 (Being goods sold to Y) Feb.15 Bill Receivable A/c(i) Dr. 30,000 Bill Receivable A/c(ii) Dr. 20,000 Bill Receivable A/c(iii) Dr. 10,000 To Y A/c 60,000 (Being three bill drawn on Y ) Feb.15 Z A/c Dr. 20,000 To Bill Receivable A/c(ii) 20,000 (Being bill endorsed to Z) Mar.15 Bank A/c Dr. 29,500 Discount A/c Dr. 500 To Bill Receivable A/c (i) 30,000 (Being bill discount from bank at 10% discount) Apr.18 Cash A/c Dr. 10,000 To Bill Receivable A/c(iii) 10,000 (Being cash received ) Mar.18 Y A/c Dr. 20,250 To Bill Receivable A/c (ii) 20,000 To Noting Charges A/c 250 (Being bill dishonoured and with noting charges charged) Jun.18 Y A/c Dr. 30,250 To Bill Receivable A/c (ii) 30,000 To Noting Charges A/c 250 (Being bill dishonoured and with noting charges charged) Jul.30 Cash A/c Dr. 25,250 Bad debts A/c Dr. 25,250 To Y A/c 50,500 (Being final payment received from Y and 50% of bad debts)
 In the books of Y Date Particulars L.F. Debit Credit 2017 Feb.12 Purchases A/c Dr. 60,000 To X A/c 60,000 (Being goods purchased from X ) Feb.15 X A/c Dr. 60,000 To Bill payable A/c (i) 30,000 To Bill payable A/c (ii) 20,000 To Bill payable A/c (iii) 10,000 (Being three-bill drawn on Y ) Apr.18 Bill payable A/c (iii) Dr. 10,000 To Cash A/c 10,000 (Being cash paid ) Mar.18 Bill Payable A/c Dr. 20,000 Noting Charges A/c Dr. 250 To X A/c 20,250 (Being bill dishonoured and with noting charges charged) Jun.18 Bill Payable A/c Dr. 30,000 Noting Charges A/c Dr. 250 To X A/c 30,250 (Being bill dishonoured and with noting charges charged) Jul.30 X A/c Dr. 60,000 To Cash A/c (i) 25,250 To Deficiency A/c 25,250 (Being final payment made to X )

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