bills receivable

1905 views 4 replies

the question given is ( based on retirement of partners. IPCC Accounts module pg.14.37): 

Bills receivable dishonoured Rs.5000 on 31-12-2008 but not recorded in books. Dishonour of bill was due to insolvency of customer. Debtors is Rs.50000.

Here, 1 implication would be that 5000 shall be deducted from bills receivable a/c. (given in book)

Whether debtors a/c in balance sheet would also be affected? Is it also a bad debt arising? (No effect for this is given in book. I m not undersatnding as to why it would have no effect on debtors.)

Kindly reply soon.

Replies (4)

There might be possibility that bill was discounted with bank.

Originally posted by : Rushi

There might be possibility that bill was discounted with bank.

Firstly the bill is dishonoured the entry will be -

 

Debtors    A/c         Dr        5000

   To Bills recievable   A/c           5000

 

however the debtor has became insolvent the amount now will become bad debts Entry will be...

 

Bad debts     A/c      Dr    5000

    To Debtors A/c                        5000

 


in short no effect on debtors A/c....

i agree with manoj,

u can pass a compound entry as follows

Bad Debts A/c.................................Dr 5000

       To Bills Receivable A/c                              5000

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details