Question No 27 Chapter No 13
Insolvency of the Acceptor
27. On 1st Janueary,2018 Arun purchased from Barun goods invoiced at Rs 10,000. on the same date, Barun drew upon Arun a bill for the amount at 2 months and Arun accepted the same. On 4th January, 2018, Barun got the bill discounted with his bank @12% per annum. On due date, Arun the Barun that he was not in a position to pay full amount and requested Barun to accept Rs 5,000 in cash and drew a fresh bill at 2 months for the remaining amount plus interest at 15% per annum, Barun agreed. The second bill was duly met on the due date.
Give journal to record the above transaction in the books of Barun
The solution of Question No 27 Chapter No 13: –
| In the books of Barun |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Jan.1 | Arun A/c | Dr. | 10,000 | ||
| To Sale A/c | 10,000 | ||||
| (Being goods sold to Arun) | |||||
| Jan.1 | Bill receivable A/c | Dr. | 10,000 | ||
| To Arun A/c | 10,000 | ||||
| (Being two bill drawn on B) | |||||
| Jan.4 | Bank A/c | Dr. | 8,800 | ||
| Discount A/c | Dr. | 1,200 | |||
| To Bill Receivable A/c | 10,000 | ||||
| (Being bill discounted from bank) | |||||
| Mar.4 | Arun A/c | Dr. | 5,000 | ||
| Cash A/c | Dr. | 5,000 | |||
| To Bill Receivable A/c | 10,000 | ||||
| To Interest A/c | 125 | ||||
| (Being second bill was to endorsed to C) | |||||
| Mar.4 | Bank A/c | Dr. | 5,000 | ||
| To Arun A/c | 5,000 | ||||
| (Being first bill dishonoured and paid 100 as noting charges) | |||||
| May.7 | Cash A/c | Dr. | 5,000 | ||
| To Bill Receivable (ii) A/c | 5,000 | ||||
| (Being second bill dishonoured and paid 75 as noting charges) | |||||
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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)
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