Question No 26 Chapter No 13 – D.K Goal 11 Class

Question No 26 Chapter No 13

Insolvency of the Acceptor

26. On 1st Feb., 2017. A sold goods to B for Rs 1,50,000 received Rs 50,000 in cash and drew two bill, first for Rs 60,000 and second for Rs 40,000 of there months each. Both the bills are duly acceptance by B. first bill was discounted from bank @10% p.a. and second bill was endorsed to C in settlement of his A/c of Rs 40,400. on the due date of these bills, both bills were dishonoured. Bank has paid Rs 100 and C has paid Rs 75 as noting charges.
B paid Rs 25,000 and noting charges in cash and accepted another bill for the balance at two months. The interest on the balance @15% p.a. was paid in cash. The new bill is immediately endorsed to D
On the due date of the new bill, B became bankrupt and only 20 paise in the Rs is realized from his estate.

The solution of Question No 26 Chapter No 13: –

In the books of A
Date	Particulars		L.F.	Debit	Credit
2018
Feb.1	Cash A/c	Dr.		50,000
	B A/c	Dr.		1,00,000
	To Sale A/c				1,50,000
	(Being goods sold to B and paid in cash)
Feb.1	Bill receivable A/c (i)	Dr.		60,000
	Bill receivable A/c (ii)	Dr.		40,000
	To B A/c				1,00,000
	(Being two bill drawn on B)
Feb.1	Bank A/c	Dr.		54,000
	Discount A/c	Dr.		6,000
	To Bill Receivable A/c (i)				60,000
	(Being bill discounted from bank)
Feb.1	C A/c	Dr.		40,000
	Discount A/c	Dr.		400
	To Bill Receivable A/c (ii)				40,400
	(Being second bill was to endorsed to C)
May.4	Bank A/c	Dr.		60,100
	To Bill Receivable (i) A/c				60,000
	To Noting charges A/c				100
	(Being first bill dishonoured and paid 100 as noting charges)
May.4	C A/c	Dr.		40,075
	To Bill Receivable (ii) A/c				40,000
	To Noting charges A/c				75
	(Being second bill dishonoured and paid 75 as noting charges)
May.4	Cash A/c	Dr.		25,175
	To B A/c				25,175
	(Being b paid cash and noting charges)
May.4	Cash A/c	Dr.		1,875
	To Interest A/c				1,875
	(Being interest charged on the bill paid by B )
May.4	Bill Receivable A/c	Dr.		75,000
	To Bill Receivable A/c (iii)				75,000
	(Being bill drawn on B including interest)
May.4	Bill Receivable A/c (iii)	Dr.		75,000
	To D A/c				75,000
	(Being bill endorsed to D)
Aug.7	Cash A/c	Dr.		15,000
	Bad debts A/c	Dr.		60,000
	To Bill Receivable A/c				75,000
	(Being bill dishonoured and 20% received 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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