Question No 49 Chapter No 13 – D.K Goal 11 Class

Question No 49 Chapter No 13

Question No 49 Chapter No 13

Free Accounting book Solution - Class 11 and Class 12

Additional Question

49. Ram Ratam Sold goods to Ahmed for Rs 1,00,000 on 30th June 2017 for which latter accepts 4 bills of Rs 25,000 each drawn on him payable after 2,4,6 and 8 months respectively. Ram Ratan retained the first bill. The second bill was sent by him for collection. The third bill was endorsed by him to C in part of payment of Rs 40,000 owed to him. The fourth bill was discounted by him with his bankers at a discount of 15% p.a.
The first bill was meet on the due date. As regards the second bill, Ahmed met Ram Ratan two days before the maturity date of the bill and paid him Rs 10,000 and accepted a fresh bill for 30 days for the balance with the interest @18% p.a. this bill as well at the third bill were met by the drawer.
Ahmed was declared an insolvent on 31st December 2017 and on the forth bill becoming due, the bank debited Ram Ratan with the amount of the bill and charges of Rs 2,500. it is ascertained by Ram Ratan that estate of Ahmed will not be in a position to meet liabilities to an extent of more than 40%
What will be the journal entries to be made in the books of Ram Ratan to record the above transaction

The solution of Question No 49 Chapter No 13: –

In the books of Ram Ratam
Date   Particulars
L.F. Debit Credit
2017          
Jun.30 Ahmed A/c Dr.   1,00,000  
  To Sale A/c       1,00,000
  (Being sold goods to Ahmed)        
           
Jun.30 Bill receivable A/c (i) Dr.   25,000  
  Bill receivable A/c (ii) Dr.   25,000  
  Bill receivable A/c (iii) Dr.   25,000  
  Bill receivable A/c (iv) Dr.   25,000  
  To Ahmed A/c       1,00,000
  (Being four bills drawn on Ahmed)        
           
Jun.30 Bill sent for collection A/c Dr.   25,000  
  Bill Receivable A/c(ii)       25,000
  (Being bill sent for collection)        
           
Jun.30 C A/c Dr.   25,000  
  To Bill receivable A/c (iii)       25,000
  To Discount A/c       15,000
  (Being acceptance received)        
           
Jun.30 Bank A/c Dr.   23,750  
  Discount charges A/c Dr.   1,250  
  To Bill receivable A/c (iv)       25,000
  (Being bill discounted from bank )        
           
Sep.3 Cash A/c Dr.   25,000  
  To Bill Receivable A/c(i)       25,000
  (Being cash received )        
           
Oct.1 Ahmed A/c Dr.   25,000  
  To Bill receivable A/c (ii)       25,000
  (Being bill dishonoured )        
           
Oct.1 Cash A/c Dr.   10,000  
  To Ahmed A/c       10,000
  (Being bill dishonored)        
           
Oct.1 Ahmed A/c Dr.   225  
  To Interest A/c       225
  (Being interest charged on Ahmed)        
           
Oct.1 Bill Receivable A/c Dr.   15,225  
  To Ahmed A/c       15,225
  (Being bill drawn on Ahmed )        
           
Dec.31 Ahmed A/c Dr.   27,500  
  To Bill Receivable A/c       25,000
  To Noting Charges A/c       2,500
  (Being bill dishonored plus noting charges)        
           
Jun.30 Cash A/c Dr.   11,000  
  Bad debts A/c Dr.   16,500  
  To Ahmed A/c       27,500
  (Being cash received from Ahmed and made 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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D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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