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Question No 49 Chapter No 13
Additional Question
49. Ram Ratam Sold goods to Ahmed for Rs 1,00,000 on 30th June 2017 for which latter accepts 4 bills of Rs 25,000 each drawn on him payable after 2,4,6 and 8 months respectively. Ram Ratan retained the first bill. The second bill was sent by him for collection. The third bill was endorsed by him to C in part of payment of Rs 40,000 owed to him. The fourth bill was discounted by him with his bankers at a discount of 15% p.a.
The first bill was meet on the due date. As regards the second bill, Ahmed met Ram Ratan two days before the maturity date of the bill and paid him Rs 10,000 and accepted a fresh bill for 30 days for the balance with the interest @18% p.a. this bill as well at the third bill were met by the drawer.
Ahmed was declared an insolvent on 31st December 2017 and on the forth bill becoming due, the bank debited Ram Ratan with the amount of the bill and charges of Rs 2,500. it is ascertained by Ram Ratan that estate of Ahmed will not be in a position to meet liabilities to an extent of more than 40%
What will be the journal entries to be made in the books of Ram Ratan to record the above transaction
The solution of Question No 49 Chapter No 13: –
In the books of Ram Ratam |
|||||
Date | Particulars |
L.F. | Debit | Credit | |
2017 | |||||
Jun.30 | Ahmed A/c | Dr. | 1,00,000 | ||
To Sale A/c | 1,00,000 | ||||
(Being sold goods to Ahmed) | |||||
Jun.30 | Bill receivable A/c (i) | Dr. | 25,000 | ||
Bill receivable A/c (ii) | Dr. | 25,000 | |||
Bill receivable A/c (iii) | Dr. | 25,000 | |||
Bill receivable A/c (iv) | Dr. | 25,000 | |||
To Ahmed A/c | 1,00,000 | ||||
(Being four bills drawn on Ahmed) | |||||
Jun.30 | Bill sent for collection A/c | Dr. | 25,000 | ||
Bill Receivable A/c(ii) | 25,000 | ||||
(Being bill sent for collection) | |||||
Jun.30 | C A/c | Dr. | 25,000 | ||
To Bill receivable A/c (iii) | 25,000 | ||||
To Discount A/c | 15,000 | ||||
(Being acceptance received) | |||||
Jun.30 | Bank A/c | Dr. | 23,750 | ||
Discount charges A/c | Dr. | 1,250 | |||
To Bill receivable A/c (iv) | 25,000 | ||||
(Being bill discounted from bank ) | |||||
Sep.3 | Cash A/c | Dr. | 25,000 | ||
To Bill Receivable A/c(i) | 25,000 | ||||
(Being cash received ) | |||||
Oct.1 | Ahmed A/c | Dr. | 25,000 | ||
To Bill receivable A/c (ii) | 25,000 | ||||
(Being bill dishonoured ) | |||||
Oct.1 | Cash A/c | Dr. | 10,000 | ||
To Ahmed A/c | 10,000 | ||||
(Being bill dishonored) | |||||
Oct.1 | Ahmed A/c | Dr. | 225 | ||
To Interest A/c | 225 | ||||
(Being interest charged on Ahmed) | |||||
Oct.1 | Bill Receivable A/c | Dr. | 15,225 | ||
To Ahmed A/c | 15,225 | ||||
(Being bill drawn on Ahmed ) | |||||
Dec.31 | Ahmed A/c | Dr. | 27,500 | ||
To Bill Receivable A/c | 25,000 | ||||
To Noting Charges A/c | 2,500 | ||||
(Being bill dishonored plus noting charges) | |||||
Jun.30 | Cash A/c | Dr. | 11,000 | ||
Bad debts A/c | Dr. | 16,500 | |||
To Ahmed A/c | 27,500 | ||||
(Being cash received from Ahmed and made 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.
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