Question No 40 Chapter No 13
Additional Question
Q. 40. On 1st May, 2017, Kunal sold goods to Subhash invoiced at t60,000 and drew upon the latter two bills of exchange, one for 20,000 at two months and another for 40,000 at four months. Subhash accepted both the bills. On 4th May, 2017, Kunal got the first bill discounted with bank @12% per annum and endorsed the second bill in favour of his creditor Mohit. Subhash met the first bill for 20,000 on due date. Before the due date of the second bill, Subhash became insolvent and his estate paid only 60 paise in a f on 8th November, 2017. ·
Pass journal entries to record all the transactions in the books of Kunal and Subhash.
The solution of Question No 40 Chapter No 13: –
| In the books of Kunal |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2017 | |||||
| May.1 | Subhash A/c | Dr. | 60,000 | ||
| To Sale A/c | 60,000 | ||||
| (Being bill drawn for 3 months) | |||||
| May.1 | Bill receivable A/c (i) | Dr. | 20,000 | ||
| Bill receivable A/c (ii) | Dr. | 40,000 | |||
| To Subhash A/c | 60,000 | ||||
| (Being two bills drawn on Subhash) | |||||
| May.4 | Bank A/c | Dr. | 19,600 | ||
| Discount A/c | Dr. | 400 | |||
| To Bill Receivable A/c | 20,000 | ||||
| (Being bill dishonored and bank charged Noting charges ) | |||||
| May.4 | Mohit A/c | Dr. | 40,000 | ||
| To Bill receivable A/c (ii) | 40,000 | ||||
| (Being bill endorsed to Mohit) | |||||
| Sep.1 | Cash A/c | Dr. | 24,000 | ||
| Bad debts A/c | Dr. | 16,000 | |||
| To Bill receivable A/c | 40,000 | ||||
| (Being 60% cash received from Subhash and 40% is bad debts ) | |||||
| In the books of Subhash |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2017 | |||||
| May.1 | Purchases A/c | Dr. | 60,000 | ||
| To Kunal A/c | 60,000 | ||||
| (Being purchases goods from Kunal) | |||||
| May.1 | Kunal A/c | Dr. | 60,000 | ||
| To Bill Payable A/c(i) | 40,000 | ||||
| To Bill Payable A/c(ii) | 20,000 | ||||
| (Being two bills drawn on Subhash) | |||||
| Jul.4 | Bill Payable A/c(i) | Dr. | 20,000 | ||
| To Cash A/c | 20,000 | ||||
| (Being purchases goods from Kunal) | |||||
| Sep.1 | Bill Payable A/c | Dr. | 40,000 | ||
| To Cash A/c | 24,000 | ||||
| To Deficiency A/c | 16,000 | ||||
| (Being 60% cash given to Kunal and 40% is bad debts ) | |||||
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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)
Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.
