Question No 23 Chapter No 13 – D.K Goal 11 Class

Question No 23 Chapter No 13

Insolvency of the Acceptor

23. On 1st August,2017 Pradeep drew a bill on Raju for Rs 75,000 for 3 months. This was for the amount which Raju owed to Pradeep. On Aug. 4,2017 Pradeep discounted the same at 14% p.a. from Bank. On November 12,2017 Raju requested Pradeep for renewal of the bill. Pradeep agreed on the condition that Rs 35000 be paid and that for the remaining amount Raju should accept a new bill for 3 months and that for the remaining amount Raju should accept a new bill for 3 months. These arrangements were duly carried out. The new bill was dishonoured on due date as Raju became insolvent. Pradeep received 40 paise in a Rs from Raju’s estate.
Show the entries in the books of both the parties

The solution of Question No 23 Chapter No 13: –

In the books of Pradeep
Date	Particulars		L.F.	Debit	Credit
2018
Aug.1	Bill Receivable A/c	Dr.		75,000
	To Raju A/c				75,000
	(Being goods sold to B.)
Aug.4	Bank A/c	Dr.		64,500
	Discount A/c	Dr.		10,500
	To Bill Receivable A/c				75,000
	(Being Bill discounted from bank)
Nov.1	Bill Receivable A/c	Dr.		75,000
	To Bank A/c				75,000
	(Being bill dishonoured )
Nov.1	Bill Receivable A/c	Dr.		35,000
	To Bank A/c				35,000
	(Being cash received from Raju)
Nov.1	Bill Receivable A/c	Dr.		40,000
	To Bank A/c				40,000
	(Being new bill drawn on him)
Jan.07	Cash A/c	Dr.		16,000
	Bad debts A/c	Dr.		24,000
	To B A/c				40,000
	(Being bill dishonoured and 50% received in cash)

In the books of Raju
Date	Particulars		L.F.	Debit	Credit
2018
Aug.1	Bill Payable A/c	Dr.		75,000
	To Pradeep A/c				75,000
	(Being purchases goods from A)
Nov.1	Bill Payable A/c	Dr.		75,000
	To Pradeep A/c				75,000
	(Being bill dishonoured)
Nov.1	Pradeep A/c	Dr.		75,000
	To Cash A/c				75,000
	(Being cash paid to Pradeep)
Nov.1	Bill Payable A/c	Dr.		40,000
	To Pradeep A/c				40,000
	(Being bill dishonoured)
Jan.07	A A/c	Dr.		5,350
	To Bill Payable A/c				5,350
	(Being purchases goods from A.)
Dec.07	Bill Payable A/c (iii)	Dr.		5,350
	To Cash A/c				3,264
	To Deficiency A/c				4,896
	(Being bill dishonoured and paid 40% in cash )

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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