Question No 38 Chapter No 13 – D.K Goal 11 Class

Question No 38 Chapter No 13

Additional Question

Q. 38. A draws on B a bill of exchange for t 1,00,000 on January 1, payable after 3 months from January 1 which B accepted. On January 4, A discounted the bill his banker at 18% p.a. B failed to meet the bill on due date and the bill was retunied to A with noting charges 200 debited to him by the bank. A received a new bill for bill value plus noting charges from B payable after 2 months. However, only 40% of the amount claimed could be recovered by A on June, 8 as B was declared insolvent on that day.
Pass Journal entries in the books of A for the above transactions.

The solution of Question No 38 Chapter No 13: –

In the books of A
Date	Particulars		L.F.	Debit	Credit
2017
Jan.1	Bill Receivable A/c	Dr.		1,00,000
	To B A/c				1,00,000
	(Being bill discount with the bank at 15% discount )
Jan.4	Bank A/c	Dr.		95,500
	Discount A/c	Dr.		4,500
	To Bill Receivable A/c				1,00,000
	(Being bill dishonored and bank charged Noting charges )
Mar.4	B A/c	Dr.		1,00,200
	To Cash A/c				1,00,000
	To Noting Charges A/c				200
	(Being bill dishonoured and bank charged Noting charges )
Mar.4	Bill Receivable A/c	Dr.		1,00,200
	To B A/c				1,00,200
	(Being bill drawn for 3 months)
Nov.7	Cash A/c	Dr.		40,080
	Bad debts A/c	Dr.		60,120
	To Bill Receivable A/c				1,00,200
	(Being 40% cash received from Y and 60% is bad debts )

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.