Question No 24 Chapter No 13
Insolvency of the Acceptor
24. On 1st July, 2018, X sold goods to Y for Rs 75,000 plus IGST 12%. X received from Y Rs 9,000 in cash and drew a bill on him for the balance amount for 2 months. On 4th July, X endorsed this to Z in full settlement of debt of Rs 76,000. on the due date of the bill, Y becomes bankrupt and his estate paid 40%
Pass entries in the books of X and Y
The solution of Question No 24 Chapter No 13: –
| In the books of X |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Jul.1 | Y A/c | Dr. | 84,000 | ||
| To Sale A/c | 75,000 | ||||
| To Output IGST A/c | 9,000 | ||||
| (Being goods sold to Y plus IGST 12%) | |||||
| Jul.1 | Bill Receivable A/c | Dr. | 75,000 | ||
| Cash A/c | Dr. | 9,000 | |||
| To Y A/c | 84,000 | ||||
| (Being bill drawn on Y and cash received ) | |||||
| Jul.4 | Z A/c | Dr. | 76,000 | ||
| To Bill Receivable A/c | 75,000 | ||||
| To Discount received A/c | 1,000 | ||||
| (Being bill endorsed to Z and received a discount from him) | |||||
| Sep.04 | Cash A/c | Dr. | 30,000 | ||
| Bad debts A/c | Dr. | 45,000 | |||
| To Bill Receivable A/c | 75,000 | ||||
| (Being bill dishonoured and 40% received in cash) | |||||
| In the books of Y |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Jul.1 | Purchase A/c | Dr. | 75,000 | ||
| Input IGST A/c | Dr. | 9,000 | |||
| To X A/c | 84,000 | ||||
| (Being purchases goods from A) | |||||
| Jul.1 | X A/c | Dr. | 84,000 | ||
| To Bill Payable A/c | 75,000 | ||||
| To Cash A/c | 9,000 | ||||
| (Being bill drawn from x and paid cash ) | |||||
| Sep.04 | Bill Payable A/c | Dr. | 75,000 | ||
| To Cash A/c | 30,000 | ||||
| To Deficiency A/c | 45,000 | ||||
| (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)
Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.
