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Question No 12 Chapter No 13 – D.K Goal 11 Class

Shubham
Question No 12 Chapter No 13

Question No 12 Chapter No 13

Dishonour and Renewal of Bill

12.On 1st January 2018, Dinesh purchased goods from Chander for 60,000 plus CGST and SGST @ 6% each. Dinesh pays 7,200 in cash and accepts a bill drawn by Chander for the balance amount payable after two months. On the due date, Dinesh is able to manage 20,000 in cash and he arranges with Chander for the retirement of the bill in consideration of this payment and a fresh bill at four months for the balance plus interest at 18% per annum. The second bill is duly met on maturity. make the necessary Journal entries in the books of Chander and Dinesh.

The solution of Question No 12 Chapter No 13: –

In the books of Chander (Drawer)
Date   Particulars
 L.F. Debit Credit
2016          
Jan.01 Dinesh A/c Dr.   67,200  
  To Sale A/c       60,000
  To Output CGST A/c       3,600
  To Output SGST A/c       3,600
  (Being Goods sold to Dinesh plus 6%CGST and SGST)        
           
Jan.01 Bills Receivable A/c Dr.   60,000  
  Cash A/c Dr.   7.200  
  To Y A/c       67,200
  (Being Dinesh paid cash in part and accepted a bill for there mining amount)        
           
Mar.04 Dinesh A/c Dr.   60,000  
  To Bills Receivable A/c       60,000
  (Being Bill cancelled on due date)        
           
Mar.04 Cash A/c Dr.   20,000  
  To Dinesh       20,000
  (Being Cash received from Dinesh)        
           
Mar.04 Dinesh A/c Dr.   2,400  
  To Interest A/c       2,400
  (Being Y accepted the new bill)        
           
Mar.04 Bills Receivable A/c Dr.   42,400  
  To Dinesh A/c       42,400
  (Being Dinesh accepted the new bill)        
           
Jul.07 Cash A/c Dr.   42,400  
  To Bills Receivable A/c       42,400
  (Being Bill honoured on due date)        
         
In the books of Dinesh (Drawee)
Date   Particulars
 L.F. Debit Credit
2016          
Jan. 01 Purchases A/c Dr.   60,000  
  Input CGST A/c Dr.   3,600  
  Input SGST A/c Dr.   3,600  
  To X A/c       67,200
  (Being Goods purchased from Chander plus 6% CGST and SGST)        
           
Jan. 01 Chander A/c Dr.   67,200  
  To Bills Payable A/c       60,000
  To Cash A/c       7,200
  (Being Bill drawn by X, accepted)        
           
Mar. 04 Bills Payable A/c Dr.   60,000  
  To Chander A/c       60,000
  (Being Bill dishonoured on due date)        
           
Mar. 04 Chander A/c Dr.   20,000  
  To Cash A/c       20,000
  (Being Cash paid to Chander)        
           
Mar. 04 Interest A/c Dr.   2,400  
  To Chander       2,400
  (Being interest due to being paid)        
           
Mar. 04 Chander A/c Dr.   42,400  
  To Bills Payable A/c       42,400
  (Being interest due to be paid)        
           
Jul. 04 Bills Payable A/c Dr.   42,400  
  To Cash A/c       42,400
  (Being Interest due to be paid)        
         

Working Note: –

Calculation of Discounting Charges

Amount of Rebate = 40,000 x  15 X 1
100 12
             
  = Rs 2,400        

https://tutorstips.com/bills-payable/

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.

D K goel accountancy +1 - ISC_Accounts_11_20_Image-min
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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