Question No 18 Chapter No 13 – D.K Goal 11 Class

Question No 18 Chapter No 13

Dishonour of bill discounted from the Bank

18. A sold goods to B for Rs 60,000 charging IGST @18% and immediately drew a bill on B who duly accepted the same. A endorsed the bill to C .C endorsed it to his creditor D. D discounted the bill for Rs 68,000. On the date of maturity, the bill was dishonoured and bank paid noting charges amounting to Rs 200
Show Journal entries in the books of all the parties to record these transaction.

The solution of Question No 18 Chapter No 13: –

In the books of A
Date	Particulars		L.F.	Debit	Credit
2018
	B A/c	Dr.		70,800
	To Sale A/c				60,000
	To Output IGST A/c				10,800
	(Being goods sold to B plus 18% IGST.)
	Bill Receivable A/c	Dr.		70,800
	To B A/c				70,800
	(Being Bill drew on B )
	C A/c	Dr.		3,600
	To Bill Receivable A/c				3,600
	(Being bill Receivable endorsed to C )

In the books of B
Date	Particulars		L.F.	Debit	Credit
2018
(ii)	Purchases A/c	Dr.		60,000
	Input IGST A/c	Dr.		10,800
	To A A/c				70,800
	(Being cheque received from Ghanshyam & Co.)
	A A/c	Dr.		70,800
	To Bill Payable A/c				70,800
	(Being new bill drawn on Ghanshyam with Rs 100 interest)
	Bill Payable A/c	Dr.		70,800
	To Bank A/c				70,800
	(Being Bill dishonoured)

In the books of C
Date	Particulars		L.F.	Debit	Credit
2018
	Bill Receivable A/c	Dr.		70,800
	To A A/c				70,800
	(Being cheque received from Ghanshyam & Co.)
	D A/c	Dr.		70,800
	To Bill Receivable A/c				70,800
	(Being Bill receivable endorsed to D. )

In the books of D
Date	Particulars		L.F.	Debit	Credit
2018
	Bill Receivable A/c	Dr.		70,800
	To C A/c				70,800
	(Being Bill receivable received from C)
	Bank A/c	Dr.		68,000
	Discount A/c	Dr.		2,800
	To Bank A/c				70,800
	(Being new bill drawn including noting changes. )
	Bill Receivable A/c	Dr.		70,800
	To B A/c				70,800
	(Being new bill drawn including noting changes. )

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Also, Check out the solved question of all Chapters: –

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

• Chapter 1 Evolution of Accounting & Basic Accounting Terms
• Chapter 2 Accounting Equations
• Chapter 3 Meaning and Objectives of Accounting
• Chapter 4 Double Entry System
• Chapter 5 Books of Original Entry – Journal 
• Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
• Chapter 7 Books of Original Entry – Cash Book (Coming soon)
• Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
• Chapter 9 Ledger (Coming soon)
• Chapter 10 Trial Balance and Errors (Coming soon)
• Chapter 11 Bank Reconciliation Statement (Coming soon)
• Chapter 12 Depreciation (Coming soon)
• Chapter 13 Bills of Exchange (Coming soon)
• Chapter 14 Generally Accepted Accounting Principles(GAAP) 
• Chapter 15 Bases of Accounting
• Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
• Chapter 17 Capital and Revenue 
• Chapter 18 Provisions and Reserves 
• Chapter 19 Final Accounts (Coming soon)
• Chapter 20 Final Accounts – With Adjustments (Coming soon)
• Chapter 21 Errors and their Rectification (Coming soon)
• Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
• Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
• Chapter 24 Computerised Accounting System (Coming soon)
• Chapter 25 Introduction to Accounting Information System (Coming soon)

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.