Question No 25 Chapter No 13
Insolvency of the Acceptor
25. Sharma owes Gupta Rs 4,20,000 on 1st January 2018 Sharma accepted a bill for 3 months for Rs 4,00,000 in full settlement. On the same Gupta discounted the bill from the bank at 6% per annum. Before the due date, Sharma became bankrupt and Gupta received the first and final dividend of 20 paise in Rs. Pass journal entries in the books of the drawer. Also, prepare the drawee’s account in the book of the drawer.
The solution of Question No 25 Chapter No 13: –
| In the books of Gupta |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Jan.1 | Bill Receivable A/c | Dr. | 4,00,000 | ||
| Discount Allowed A/c | Dr. | 20,000 | |||
| To Raju A/c | 4,20,000 | ||||
| (Being bill drawn on Gupta and allowed him discount) | |||||
| Jan.1 | Bank A/c | Dr. | 3,76,000 | ||
| Discount A/c | Dr. | 24,000 | |||
| To Bill Receivable A/c | 4,00,000 | ||||
| (Being Bill discounted from bank) | |||||
| Bill Receivable A/c | Dr. | 4,20,000 | |||
| To Bank A/c | 4,20,000 | ||||
| (Being bill dishonoured ) | |||||
| Cash A/c | Dr. | 84,000 | |||
| Bad debts A/c | Dr. | 3,60,000 | |||
| To Bank A/c | 4,20,000 | ||||
| (Being bill dishonoured and 20% received in cash) | |||||
| In the books of Sharma |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Jan.1 | Gupta A/c | Dr. | 4,20,000 | ||
| To Discount received A/c | 20,000 | ||||
| To Bill Payable A/c | 4,00,000 | ||||
| (Being bill drawn by Gupta.) | |||||
| Bill Payable A/c | Dr. | 4,20,000 | |||
| To Cash A/c | 84,000 | ||||
| To Deficiency A/c | 3,36,000 | ||||
| (Being bill dishonoured and 20% paid in cash) | |||||
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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.
