Question No 21 Chapter No 13 – D.K Goal 11 Class

Question No 21 Chapter No 13

Insolvency of the Acceptor

21. On July 1,2017 Amita draws a b on Ramlakhan for Rs 10,000 payable after three months for goods sold of the same amount. Amita gets the bill discounted with her bank on August 4,2017 at a discount of 9% p.a. On due date bank returned the bill as dishonoured with the noting charges of Rs 50
Ramlakhan paid Rs 2,050 in cash and requested to drew another bill on him for the balance amount for 2 months with interest with the interest @12% p.a. which Amita did.
Before due date Ramlakhan become insolvent and his estate paid 40% as first and final instalment

The solution of Question No 21 Chapter No 13: –

In the books of Amita
Date	Particulars		L.F.	Debit	Credit
2018
Jul.1	Bill Receivable A/c	Dr.		10,000
	To Ramlakhan A/c				10,000
	(Being bill drawn on Ramlakhan.)
Aug.04	Bank A/c	Dr.		9,850
	Discount A/c	Dr.		150
	To B A/c				10,000
	(Being three bills drew on B and acceptance received from him.)
Oct.04	Bill Receivable A/c	Dr.		10,000
	Noting Charges A/c	Dr.		50
	To Bank A/c				10,050
	(Being bill dishonoured )
Oct.04	Cash A/c	Dr.		2,050
	To Ramlakhan A/c				2,050
	(Being cash received from Ramlakhan)
Oct.04	Ramlakhan A/c	Dr.		160
	To Interest A/c				160
	(Being interest charged on bill)
Dec.07	Cash A/c	Dr.		3,264
	Bad debts A/c	Dr.		4,896
	To Bill Receivable A/c				8,160
	(Being third bill was dishonoured )

In the books of Ramlakhan
Date	Particulars		L.F.	Debit	Credit
2018
Jul.1	Amita A/c	Dr.		10,000
	To Bill Payable A/c				10,000
	(Being purchases goods from A)
Oct.04	Bill Payable A/c	Dr.		10,000
	To Amita A/c				10,000
	(Being three bills drew by Satish acceptance by us.)
Oct.04	Amita A/c	Dr.		2,050
	To Cash A/c				2,050
	(Being cash paid to Amit)
Oct.04	Amita A/c	Dr.		8,160
	To Bill Payable A/c				8,160
	(Being cash paid to Amit)
Dec.07	Bill Payable A/c (iii)	Dr.		8,160
	To Cash A/c				3,264
	To Deficiency A/c				4,896
	(Being bill dishonoured and paid 40% in cash )

Working Note: –

Calculation of Discounting Charges

Discounting Charges	=	10,000	x	9	X	2
				100		12
	=	Rs 150

Calculation of interest Charges

Interest Charges	=	8,000	x	12	X	2
				100		12
	=	Rs 160

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

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)

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