222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Insolvency of Acceptor of Bill Journal Entries

If the acceptor of bill of exchange will declare that he is insolvent at the time of maturity of bill, then bill will be dishonour and All the journal entries will pass which I have taught in dishonour of bill journal entries. Except this, we app some more journal entries. Because there is no hope of getting money from same drawee, so, All due fund will be bad debts for drawer.

Following are the Main Journal Entries when Acceptor will be Insolvent

In the books of Drawer

1st Journal Entry


Drawee Account Debit

Bill Receivable Account Credit

2nd journal Entry

If there is full loss of drawer's receivable money

Bad Debts Account Debit

Drawee Account Credit

If drawer will receive some money

Bank Account ( 20 % Received of total receivable amount ) Debit

Bad Debt Account ( 80% not received of total receivable amount ) Debit

Drawee Account Credit


In the books of Drawee

1st Journal Entry


Bill Payable Account Debit

Drawer Account Credit

2nd journal Entry

If there is full loss of drawer's receivable money

Drawer Account Debit

Deficiency Account Credit


If drawer will receive some money

Drawer Account Debit

Bank Account ( 20 % Received of total receivable amount ) Credit

Deficiency  Account ( 80% not received of total receivable amount ) Credit

( Logic :  When court accepted that drawee became insolvent. His reputation will become low in the market. But still, he is human being. So, as human being, he has free from his liability of his creditor. Drawer is his creditor. He has not ability to pay him full. Only 20% he will pay. So, in the books, for decreasing total liability of drawer, we need to debit the drawer account. Credit will be bank account, because we have paid it and our total asset will decrease with this amount and we have no rest asset. So, balance will deficiency account as credit of this journal entry. )

Related Contents 


  1. Renewal of Bill Journal Entries 
  2. Bill Dishonour Journal Entries 
  3. Bill Sent for Collection with Bank Journal Entries 
  4. Bill Discounting with Bank Journal Entries
  5. Journal Entries for Endorsement of Bill
  6. Journal Entries of Bill of Exchange
  7. Accounting of Bill of Exchange 

Reference

11th Class Accounting eBook


 


Name

access,2,account,86,accountant,95,Accounting,683,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,87,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,143,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,5,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Insolvency of Acceptor of Bill Journal Entries
Insolvency of Acceptor of Bill Journal Entries
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2QMwi4cXFwkRsIfCt1ibM5z30bAM3q0OlblPl4rhM0hYXSIHu8UwQaLukcdsEDsd0dlm76qRJ_zjRgebBqot5dit5nxYtJU1Oq57LOlUfrOKv8LWzknGmzoG1yqPtZ2NGcBSMlIOD6wP0/s320/insolvent.jpg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2QMwi4cXFwkRsIfCt1ibM5z30bAM3q0OlblPl4rhM0hYXSIHu8UwQaLukcdsEDsd0dlm76qRJ_zjRgebBqot5dit5nxYtJU1Oq57LOlUfrOKv8LWzknGmzoG1yqPtZ2NGcBSMlIOD6wP0/s72-c/insolvent.jpg
Accounting Education
https://www.svtuition.org/2018/07/insolvency-of-acceptor-of-bill-journal.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2018/07/insolvency-of-acceptor-of-bill-journal.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy