Question No 29 Chapter No 13 – D.K Goal 11 Class

Question No 29 Chapter No 13

Insolvency of the Acceptor

29. On 15th January 2018, X sold goods to Y for Rs 50,000 charging IGST @ 12%. Y immediately paid Rs 6,000 in cash and acceptance two bills of equal amount, the first for one month and the second for two months. The first bill was met on due date but on the due date of second bill, Y requested that the bill be renewed for a further period of two months. X agreed provided that interest at 15% p.a. was paid immediately in cash. Y agreed to this. The second bill was met on the due
Give journal entries in the books of X and Y.

The solution of Question No 29 Chapter No 13: –

In the books of X
Date	Particulars		L.F.	Debit	Credit
2018
Jan.15	Y A/c	Dr.		50,000
	Cash A/c	Dr.		6,000
	To Sale A/c				50,000
	To Output IGST A/c				6,000
	(Being goods sold to B and plus IGST @12%)
Jan.15	Bill receivable A/c(i)	Dr.		25,000
	Bill receivable A/c(ii)	Dr.		25,000
	To Y A/c				50,000
	(Being two bill drawn on Y)
Feb.18	Cash A/c	Dr.		25,000
	To Bill Receivable A/c				25,000
	(Being bill dishonored)
Mar.18	Y A/c	Dr.		25,000
	To Bill Receivable A/c				25,000
	(Being bill dishonored)
Mar.18	Cash A/c	Dr.		625
	To Interest A/c				625
	(Being interest received )
Mar.18	Bill Receivable A/c	Dr.		25,000
	To Y A/c				25,000
	(Being new bill drawn )
Apr.21	Cash A/c	Dr.		25,000
	To Bill Receivable A/c				25,000
	(Being cash received)

In the books of B
Date	Particulars		L.F.	Debit	Credit
2018
Jan.15	Purchases A/c	Dr.		50,000
	Input IGST A/c	Dr.		6,000
	To Cash A/c				6,000
	To X A/c				50,000
	(Being purchased from X and plus IGST @12%.)
Jan.15	X A/c	Dr.		50,000
	To Bill Payable A/c				25,000
	To Bill Payable A/c				25,000
	(Being two bill drawn by X)
Feb.18	Bill Payable A/c	Dr.		25,000
	To Cash A/c				25,000
	(Being bill dishonored)
Mar.18	Bill Payable A/c	Dr.		25,000
	To X A/c				25,000
	(Being new bill drawn plus interest )
Mar.18	Interest A/c	Dr.		625
	To Cash A/c				625
	(Being interest paid)
Mar.18	X A/c	Dr.		25,000
	To Bill Payable A/c				25,000
	(Being new bill drawn by X)
Apr.21	Cash A/c	Dr.		25,000
	To Bill Payable A/c				25,000
	(Being cash received)

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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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