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Question 28 Chapter 14 – Class 11 Unimax
28. X draws on Y, for the mutual accommodation of both a bill for ₹ 2,000 on 1st February at 3 months. X discounts the bill for ₹ 1,960 and remits half the proceed to Y. On maturity, X is unable to send the amount due and therefore Y draws on X a bill for ₹ 2,500 which is duly accepted by X. Y discounts the bills for ₹ 2,400 and remits ₹ 200 to X. Before the bill is due for payment. X become insolvent. Later 30% dividend from his estate.
Give X’s account in Y’s account in X’s books.
The solution of Question 28 Chapter 14 – Class 11 Unimax
| Journal for Mr. ‘X’ (Drawer) | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| Feb. 1 | Bill receivable A/c | Dr. | 2,000 | ||
| To Y’s A/c | 2,000 | ||||
| (Being acceptance of bill received from Y for mutual accommodation) | |||||
| Feb. 1 | Bank A/c | Dr. | 1,960 | ||
| Discount A/c | Dr. | 40 | |||
| To Bills receivable A/c | 2,000 | ||||
| (Being bill discounted with bank) | |||||
| Feb.1 | Y’s A/c | Dr. | 1,000 | ||
| To Cash A/c | 980 | ||||
| To Discount A/c | 20 | ||||
| (Being half the amount remitted) | |||||
| May 4 | Y’s A/c | Dr. | 2,500 | ||
| To Bills payable A/c | 2,500 | ||||
| (Being acceptance of bill given to Y) | |||||
| May 4 | Cash A/c | Dr. | 200 | ||
| Discount A/c | Dr. | 50 | |||
| To Y’s A/c | 250 | ||||
| (Being cash received from Y and discount allowed) | |||||
| Due date | Bill payable A/c | Dr. | 2,500 | ||
| To Y’s A/c | 2,500 | ||||
| (Being insolvent & bill not met) | |||||
| Before Due date | Y’s A/c (1,000+250) | Dr. | 1,250 | ||
| To cash A/c | 375 | ||||
| To Deficiency A/c | 875 | ||||
| (Being insolvent & only 30% paid to Y) | |||||
| Dr. | Y’s A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| Feb. 1 | To cash A/c | 980 | Feb. 1 | By Bill receivable A/c | 2,000 | ||
| Feb. 1 | To Discount A/c | 20 | Mar. 4 | By Discount A/c | 50 | ||
| May 4 | To Bill payable A/c | 2,500 | May 4 | By Cash A/c | 200 | ||
| To Cash A/c | 375 | By Bill Payable A/c | 2,500 | ||||
| To Deficiency A/c | 875 | ||||||
| 4,750 | 4,750 | ||||||
| Journal for Mr. ‘Y’ (Drawee) | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| Feb. 1 | X’s A/c | Dr. | 2,000 | ||
| To Bill payable A/c | 2,000 | ||||
| (Being acceptance of bill given to X for 3 months) | |||||
| Feb. 1 | Cash A/c | Dr. | 980 | ||
| Discount A/c | Dr. | 20 | |||
| To X’s A/c | 1,000 | ||||
| (Being half the amount of bill received from X) | |||||
| May 4 | Bills payable A/c | Dr. | 2,000 | ||
| To Cash A/c | 2,000 | ||||
| (Being bill met on due date) | |||||
| May 4 | Bills receivable A/c | Dr. | 2,500 | ||
| To X’s A/c | 2,500 | ||||
| (Being acceptance of bill received from X) | |||||
| May 4 | Bank A/c | Dr. | 2,400 | ||
| Discount A/c | Dr. | 100 | |||
| To Bills receivable A/c | 2,500 | ||||
| (Being bill discounted with bank) | |||||
| May 4 | X’s A/c | Dr. | 250 | ||
| To Cash A/c | 200 | ||||
| To Discount A/c | 50 | ||||
| (Being cash paid to X) | |||||
| Before Due date | X’s A/c | Dr. | 2,500 | ||
| To Bank A/c | 250 | ||||
| (Being bill not met on due date by X) | |||||
| Before Due date | Cash A/c | Dr. | 375 | ||
| Bad debts A/c | Dr. | 875 | |||
| To X’s (1,000+250) A/c | 1,250 | ||||
| (Being ‘X’ become insolvent and only 30% amount received from him) | |||||
| Dr. | X’s A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| Feb. 1 | To Bills payable A/c | 2,000 | Feb. 1 | By Bill receivable A/c | 23,000 | ||
| Mar. 4 | To Discount A/c | 50 | Feb. 1 | By Bill receivable A/c | 23,485 | ||
| May 4 | To cash A/c | 200 | Mar. 4 | By Cash A/c | 10,000 | ||
| To Bank A/c | 2,500 | By Bill receivable A/c | 13,985 | ||||
| 4,750 | 4,750 | ||||||
Working Note:
(i) As soon as one party become insolvent after making dishonoured entry it should be found as to how much amount is due by ‘X’ to ‘Y’ for which we should prepare X’s account in Y’s books and Y’s A/c in X’s book. Both will show the same amount with different balance (Dr. or Cr.)
(ii) Discounting charges of second bill have been apportioned in the ratio in which X & Y shared the proceeds of second bill i.e. 1:1 shown as follows:
Total proceeds received of second bill
Amount paid on behalf of partners for 1st bill
| X | Y | |
| 1,000 | 1,000 | |
| Balance (₹ 2,400-2,000) 400, distributed as | 200 | 200 |
| 1,200 | 1,200 | |
| Ratio which proceeds of second bill shared 1:1 | ||
| Discounting charges of second bill to be shared | 50 | 50 |
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End of Solution
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Question 10 Chapter 14 – Class 11 Unimax
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Question 22 Chapter 14 – Class 11 Unimax
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1. Comprehensive Solutions for All Chapters of Advanced Accountancy I Class 11 by Unimax
UnimaxSolutions.in offers a comprehensive solution for students studying Advanced Accountancy I Part 1 in Class 11. With their meticulously curated study material, students can access comprehensive solutions to all the questions included within each chapter. By selecting the chapter name from the study material, students can easily navigate through the topics and find detailed explanations and step-by-step solutions to the problems presented in that section. Whether it’s understanding complex accounting concepts, mastering calculation techniques, or analyzing financial statements, Unimax provides a valuable resource to aid students in their learning journey. With these comprehensive solutions at their disposal, students can enhance their understanding, clarify doubts, and improve their problem-solving skills in Advanced Accountancy, ensuring they are well-prepared for their Class 11 examinations.
- Chapter No. 1 – Introduction of Accounting
- Chapter No. 2 – Theory Base of Accounting
- Chapter No. 3 – Vouchers and Transactions
- Chapter No. 4 – Journal
- Chapter No. 5 – Goods and Services Tax (GST): An Introduction
- Chapter No. 6 – Ledger
- Chapter No. 7 – Special Purpose Book – Cash Book
- Chapter No. 8 – Other Subsidiary Books
- Chapter No. 9 – Trial Balance
- Chapter No. 10 – Rectification of Errors
- Chapter No. 11 – Depreciation
- Chapter No. 12 – Provision and Reserves
- Chapter No. 13 – Bank Reconciliation Statement
- Chapter No. 14 – Bills of Exchange
- Chapter No. 15 – Financial Statements (Without Adjustments)
- Chapter No. 16 – Financial Statements (With Adjustments)
- Chapter No. 17 – Accounts from Incomplete Records – Single Entry System
2. Punjab School Education Board (PSEB) Solutions of Usha Publication.
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