Question No 47 Chapter No 13 – D.K Goal 11 Class

Question No 47 Chapter No 13

Question No 47 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

Additional Question

47. On 1st January 2017, A owes B Rs 60,000 for which B receives two acceptances from A, one for Rs 20,000 payable in two months, second for Rs 40,000 payable in four months in each case from 1st January.
B duly discounts both these acceptances with his bankers on 3rd Jan. at 6% p.a. before the first bill become due, A requested B to assist him in taking up the bill by providing him Rs 10,000 cash and drawing a third a third bill on A for that amount at three months from the use date of the first bill plus interest at 6% p.a. B agreed to his proposal and advanced the money after discounting the bill with his banker at 4% p.a. A week before the second bill for Rs 40,000 falls due, A again asks B to assist him to the extent of the Rs 25,000. B however is not in apposition to do this and he arrangers with A to draw to him (B) two bills for Rs 11,100 and Rs 14,200 at two months and three months them to A who discounts them with his bankers at 5% p.a. and assisted by the proceeds, duly meets the Rs 40,000 bill. B also meets his two acceptances on maturity.
On 7th June, A becomes insolvent leaving his third bill unpaid. On 1st October, a first and final dividend of 50 paise in the Rs was received from his estate.
Pass journal entries in B’s Books and prepare A’ A/c

The solution of Question No 47 Chapter No 13: –

In the books of ….
Date   Particulars
L.F. Debit Credit
2017          
Jan.1 Bill Receivable A/c(i) Dr.   20,000  
  Bill Receivable A/c(ii) Dr.   40,000  
  To A A/c       60,000
  (Being Acceptance received )        
           
Jan.3 Bank A/c Dr.   59,000  
  Discount Charges A/c Dr.   1,000  
  Bill Receivable A/c       60,000
  (Being three bill drawn on Y )        
           
Mar.4 A A/c Dr.   150  
  To Interest A/c       150
  (Being interest debited to A)        
           
Mar.4 Bill Receivable A/c(iii) Dr.   10,150  
  To A A/c       10,150
  (Being acceptance received)        
           
Mar.4 Bank A/c Dr.   10,048  
  Discounting charges A/c Dr.   102  
  To Interest A/c       10,150
  (Being interest charged on Arjun)        
           
Mar.4 A A/c Dr.   10,000  
  To Bank A/c       10,000
  (Being cash paid to A)        
           
May.4 A A/c Dr.   25,300  
  To Bill payable A/c(i)       11,100
  To Bill payable A/c(ii)       14,200
  (Being bill endorsed to Y)        
           
Jun.4 A A/c Dr.   10,150  
  To Bank A/c       10,150
  (Being third bill dishonoured)        
           
Jul.7 Bill payable A/c(i) Dr.   11,100  
  To Bank A/c       11,100
  (Being first acceptance paid)        
           
Aug.4 Bill payable A/c(ii) Dr.   14,200  
  To Bank A/c       14,200
  (Being second acceptance paid)        
           
Aug.4 Bank A/c Dr.   17,725  
  Bad debts A/c Dr.   17,725  
  To A A/c       35,450
  (Being 50 paise per Rs received in full settlement )        
         
Dr. A A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
2018       2018      
Jan.1 To Balance b/d   60,000 Jan.1 By Bill Receivable A/c(i)   20,000
Mar.4 To Interest A/c   150 Jan.1 By Bill Receivable A/c(ii)   40,000
Mar.4 To Bank A/c   10,000 Mar.4 By Bill Receivable A/c(iii)   10,150
Mar.4 To Bill Payable A/c(i)   11,100        
Mar.4 To Bill Payable A/c(ii)   14,200        
Jun.7 To Bank A/c   10,150        
        May. 31 By Balance c/d   34,450
      1,05,600       1,05,600

Bills Payable Book | Subsidiary Books | Examples

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