at the time of retirement of a partner , a bill of exchange for rs 50000 which was previously discounted - Accountancy - Reconstitution- Retirement/Death of a Partner

Question

​at the time of retirement of a partner , a bill of exchange
for rs 50000 which was previously discounted with the banker was
dishonored as the drawee had become insolvent and nothing could be
realised from his estate the accountant seeks your advice

Neha Chopra · Accepted Answer

Dear Student

Here the transaction means Rs 50,000 loss has been incurred to the
firm as the debtor has become insolvent
Journal entries for the whole transaction shall be :

Journal in the books

Date
Particulars

Debit
Credit

Debtor A/c
Dr
50,000

To Bank A/c

50,000

(Being discounted bill dishonored)

Revaluation A/c
Dr
50,000

To Debtor A/c

50,000

(Being Debtor become insolvent and hence
bad debt occurred and booked)

Regards

Journal in the books
Date	Particulars		Debit	Credit

	Debtor A/c	Dr.	50,000
	To Bank A/c			50,000
	(Being discounted bill dishonored)

	Revaluation A/c	Dr.	50,000
	To Debtor A/c			50,000
	(Being Debtor become insolvent and hence bad debt occurred and booked)

​at the time of retirement of a partner , a bill of exchange for rs.50000 which was previously discounted with the banker was dishonored as the drawee had become insolvent and nothing could be realised from his estate . the accountant seeks your advice

at the time of retirement of a partner , a bill of exchange for rs.50000 which was previously discounted with the banker was dishonored as the drawee had become insolvent and nothing could be realised from his estate . the accountant seeks your advice