SAMPLE QUESTION PAPER

A purchased goods for Rs.15,000 from B on March 1, 2,011 and gives him two bills one for Rs.10,000 at two months and the other for Rs.5000 at four months. A meets the first bill at maturity but on June25,2011 he is declared insolvent and a dividend of 60 paisa in a rupee is paid from his property on August 20,2011. Give journal entries in the books of B and prepare A's Account in B's Ledger.

OR

On July 1,2011 Amita draws a bill on Ramlakhan for Rs. 10,000 payable after three months for goods solds of the same amount. Amita gets the bill discounted with her bank on August 4,2007 at a discount of 9% p.a.. On due date bank returned the bill as dishonoured with nothing charges of Rs.50.

Ramlakhan paid Rs.2,050 in cash and requested to draw another bill on him for the balance amount for 2 month with interest @ 12% p.a., Which Amita did. Before due date Ramlakhan became insolvent and his estate paid 40% as dirst and final instalment.

Give Journal entries in the books of Amita.