Question 27 Chapter 14 – Class 11 Unimax

Question 27 Chapter 14 – Class 11 Unimax


Question 27 Chapter 14 – Class 11 Unimax

27. Shubham draws on Rajendra a bill for ₹ 45,000 on 1st June, 2019 for 3 months. Rajendra accepts the bill and sends it to Shubham who gets it discounted for ₹ 44,100. Shubham immediately remits ₹ 14,700 to Rajendra. On the due date Shubham, being unable to remit the amount due accepts a bill for 63,000 for three months which is discounted by Rajendra for ₹ 61,650. Rajendra sends ₹ 11,100 to Shubham. On the due date Shubham become insolvent, his estate paying forty paise in the rupee. Given journal entries in the books of Shubham and Rajendra.

The solution of Question 27 Chapter 14 – Class 11 Unimax

Journal for Mr. ‘Shubham’ (Drawer)
June 1Bill receivable A/cDr. 45,000 
 To Rajendra’s A/c   45,000
 (Being acceptance of bill received from Rajendra for mutual accommodation)   
June 1Bank A/cDr. 44,100 
 Discount A/cDr. 900 
 To Bills receivable A/c   45,000
 (Being bill discounted with bank)   
June 1Rajendra’s A/cDr. 15,000 
 To Cash A/c  14,700
 To Discount A/c  300
 (Being a part of bill remitted to Rajendra immediately)   
Sept. 4Rajendra’s A/cDr. 63,000 
 To Bills payable A/c   63,000
 (Being acceptance of bill given to Rajendra)    
Sept. 4Cash A/cDr. 11,100 
 Discount A/cDr. 900 
 To Rajendra’s A/c   12,000
 (Being cash received from Rajendra and discount allowed)    
Dec. 7Bill payable A/cDr. 63,000 
 To Rajendra’s A/c   63,000
 (Being bill not met on due date)    
Dec. 7Rajendra’s A/cDr. 42,000 
 To cash A/c   16,800
 To Deficiency A/c   25,200
 (Being insolvent, only 40% amount paid to Rajendra)   


Journal for Mr. ‘Rajendra’ (Drawee)
June 1Shubham A/cDr. 45,000 
 To Bill payable A/c   45,000
 (Being acceptance of bill given to Shubham for 3 months)   
Nov. 3Cash A/cDr. 14,700 
 Discount A/cDr. 300 
 To Shubham A/c   15,000
 (Being cash received from Shubham and discount allowed)   
Sept. 4Bills payable A/cDr. 45,000 
 To Cash A/c  45,000
 (Being payment of bill made on due date)   
Sept. 4Bills payable A/cDr. 63,000 
 To Shubham A/c   63,000
 (Being acceptance of bill received from Shubham)    
Sept. 4Bank A/cDr. 61,650 
 Discount A/cDr. 1,350 
 To Bill payable A/c   63,000
 (Being bill discounted with bank)    
Sept. 4Shubham A/cDr. 12,000 
 To Cash A/c   11,100
 To Discount A/c   900
 (Being cash paid to Shubham)    
Dec. 7Shubham A/cDr. 63,000 
 To Bank A/c   63,000
 (Being bill not met on due date)    
Dec. 7Cash A/cDr.   16,800 
 Bad debts A/cDr. 25,200 
 To Shubham (39,000+12,000) A/c   42,000
 (Being Shubham become insolvent any only 40% amount received from him)   

Working Note:

(1) As soon as one party become insolvent after making dishonoured entry it should be found as to how much amount is due by Shubham to Rajendra.

(2) Discounting charges of second bill have been apportioned in the ratio in which Shubham & Rajendra shared the proceeds of second bill i.e. 2:1 shown as follows:

Total proceeds received of second bill = ₹ 61,650

Amount paid on behalf of partners for 1st bill

Balance (61,650-45,000) 16,650, distributed as11,1005,550
Ratio in which proceeds of second bill shared 2:1  
Discounting charges of second bill to b shared as900450


End of Solution

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If you’re a student enrolled in the Punjab School Education Board Class 11, it’s essential to explore a wide range of books to cover the syllabus thoroughly. While the prescribed textbooks are undoubtedly valuable, supplementing your studies with additional resources can enhance your understanding and knowledge. Consider checking out other books that align with the curriculum, offering different perspectives and insights on the subjects you’re studying. These supplementary materials can provide you with alternative explanations, practice questions, and examples that may aid in clarifying complex concepts. Moreover, exploring diverse sources can expose you to a variety of writing styles and viewpoints, fostering a broader understanding of the subjects. So, seize the opportunity to expand your learning by delving into other books that can complement your studies and contribute to your academic growth.


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