UPSC Exam  >  UPSC Questions  >  On first July 2018 X sold goods to why valued... Start Learning for Free
On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal?
Most Upvoted Answer
On first July 2018 X sold goods to why valued 40000 taking therefore a...
Transaction Overview
On July 1, 2018, X sold goods valued at 40,000 to Y with a bill of exchange maturing in three months. The details of subsequent transactions are as follows:
Bill Discounting
- On August 1, 2022, X discounted the bill at a 15% annual interest rate.
- Maturity value of the bill: 40,000.
- Discount for 3 months:
- Calculation: 40,000 * 15% * (3/12) = 1,500.
- Amount received after discounting:
- 40,000 - 1,500 = 38,500.
Dishonor of Bill
- At maturity, the bank dishonored the bill, incurring expenses of 200.
- Cash payment made by Y: 10,000.
New Bill Issued
- X received a new bill from Y for 30,000 at 18% per annum for 2 months.
- Interest on new bill:
- Calculation: 30,000 * 18% * (2/12) = 900.
Bankruptcy of Y
- Before the maturity of the new bill, Y declared bankruptcy.
- X’s credit in the books is recorded as 75,500.
Journal Entries
The following journal entries should be recorded in X’s books:
- For the Sale of Goods:
- Debit: Accounts Receivable (Y) 40,000
- Credit: Sales 40,000
- For Discounting the Bill:
- Debit: Cash 38,500
- Debit: Discount on Bills 1,500
- Credit: Accounts Receivable (Y) 40,000
- For Dishonor of Bill:
- Debit: Accounts Receivable (Y) 40,200
- Credit: Cash 10,000
- Credit: Expenses 200
- Credit: Discount on Bills 30,000
- For New Bill Received:
- Debit: Accounts Receivable (Y) 30,900
- Credit: New Bill Receivable 30,000
- Credit: Interest Income 900
- For Bankruptcy:
- Debit: Loss on Bankruptcy 75,500
- Credit: Accounts Receivable (Y) 75,500
This outlines the transactions and necessary journal entries following the sequence of events.
Explore Courses for UPSC exam

Similar UPSC Doubts

Top Courses for UPSC

On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal?
Question Description
On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal?.
Solutions for On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal? defined & explained in the simplest way possible. Besides giving the explanation of On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal?, a detailed solution for On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal? has been provided alongside types of On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal? theory, EduRev gives you an ample number of questions to practice On first July 2018 X sold goods to why valued 40000 taking therefore a will at 3 months on first august 2022 X discounted this bill 15% per annum with his banker at maturity the bill was written by the bankers disonder with 200 rupees as expenses why Pate 10000 and expense in cash give two another bill at 2 months for 30000 + 18% per annum interest but before maturity why becomes bankrupt and where is credit as 75 5A in Rupees made necessary entry same x journal? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev