Question No 28 Chapter No 13 – D.K Goal 11 Class

Question No 28 Chapter No 13

Insolvency of the Acceptor

28. On 1st February 2018, A sold goods to B for Rs 40,000 Charging CGST and SGST @9% each. B Rs 17,200 in cash and acceptance a three months bill for the balance. On the due date, B expressed his inability to meet the bill and offered Rs 12,000 in cash and To accept a new bill for one month for the balance plus interest at 18% p.a. A agrees to proposal. On the due date bill was duly honoured by B. pass entries ion the books of A and B.

The solution of Question No 28 Chapter No 13: –

In the books of A
Date	Particulars		L.F.	Debit	Credit
2018
Feb.1	B A/c	Dr.		30,000
	Cash A/c	Dr.		17,200
	To Sale A/c				40,000
	To Output CGST A/c				3,600
	To Output SGST A/c				3,600
	(Being goods sold to B and plus CGST and SGST @9%)
Feb.1	Bill receivable A/c	Dr.		30,000
	To B A/c				30,000
	(Being two bill drawn on B)
May.4	B A/c	Dr.		18,000
	Cash A/c	Dr.		12,000
	To Bill Receivable A/c				30,000
	(Being bill discounted from bank)
May.4	B A/c	Dr.		270
	To Interest A/c				270
	(Being bill dishonoured )
May.4	Bill Receivable A/c	Dr.		18,270
	To B A/c				18,270
	(Being new bill drawn plus interest )
Jun.7	Cash A/c	Dr.		18,270
	To Bill Receivable (ii) A/c				18,270
	(Being cash received)

In the books of B
Date	Particulars		L.F.	Debit	Credit
2018
Feb.1	Purchases A/c	Dr.		40,000
	Input CGST A/c	Dr.		3,600
	Input SGST A/c			3,600
	To Cash A/c				17,200
	To A A/c				40,000
	(Being goods sold to B and plus CGST and SGST @9%)
Feb.1	A A/c	Dr.		30,000
	To Bill Payable A/c				30,000
	(Being bill drawn by A)
May.4	Bill Payable A/c	Dr.		30,000
	To Cash A/c				12,000
	To A A/c				18,000
	(Being bill discounted from bank)
May.4	A A/c	Dr.		18,270
	To Bill Payable A/c				18,270
	(Being new bill drawn plus interest )
Jun.7	Bill Payable A/c	Dr.		18,270
	To Cash A/c				18,270
	(Being cash received)

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.