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Example: State whether the seller is an unpaid seller or not in each of the following alternative cases:
Case (a) X sold some goods to Y for Rs. 10,000. Y paid Rs.9,900 but failed to pay the balance.
Case (b) X sold some goods to Y for Rs. 10,000 and received a cheque for the full price as conditional payment. On presentment, the cheque was dishonoured by the Bank.
Case (c) X sold some goods to Y for Rs. 10,000 on a credit of one month. One month has not yet expired.
Case (d) X sold some goods to Y for Rs. 10,000 on a credit of one month and one month has expired and the price remains unpaid.
Case (e) X sold some goods to Y for Rs. 10,000 on a credit of one month. Y became insolvent during the period of credit.

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Solution

Solution:
Case (a): X is an. unpaid seller because the full price has not been .paid.
Case (b): X is an unpaid seller because the cheque received as conditional payment has been dishonoured.
Case (c): X is not an unpaid seller because the credit period has not yet expired and the buyer has not yet become insolvent.
Case (d): X is an unpaid seller because the price remains unpaid even after the expiry of credit period.
Case (e): X is an unpaid seller because the buyer has become insolvent

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Example State whether a tight of lien can be exercised in each of the following alternative cases:
Case (a) X sold goods to Y for Rs. 10,000 without any stipulation as to credit and the price remains unpaid:
Case (b) X sold goods to Y for Rs. 10,000 on a credit of 1 month and the period of credit has expired.
Case (c) X sold goods to Y for Rs. 10,000 on a credit of 1 month and Y became insolvent during the period of credit.
Case (d) X of Delhi, sold goods to Y of Mumbai for Rs. 10,000 and delivered the same to the railway for the purpose of transmission to the buyer. The railway receipt was taken in the name of Y and sent to Y.
Case (e) X sold goods to Y for Rs. 10,000 and Y's agent lawfully took the delivery of goods.
Case (f) X sold goods to Y for Rs. 10,000 and expressly waived his. right of lien.
Case (g) X sold 10 tons of wheat to Y for Rs. 1,00,000 and Y resold 8 tons of wheat out of 10 tons to Z. Y instructed X to deliver 8 tons of wheat to. Z. Y then became insolvent.
Case (h) X of Delhi sold some goods to Y of Mumbai and took the railway receipt to his own name and sent the railway receipt to. his agent,
Case (i) X of Delhi sold some goods to Y of Mumbai and took the railway receipt in the name of Y and it was sent by X to his agent.

Q. Anil, brother of Sunil sold goods to Suraj for Rs.10,000 and drew a bill upon him payable after 3 months. In this case, the drawee is/ are .

On 1st Jan, 2017 X sold goods to Y for Rs 10,000 on credit basis. On the same date X drew a bill for Rs 10,000 on Y at two months. Y accepted the bill and returned it to X. On the due date Y could not honor acceptance. What is the journal for recording the dishonor of a bill?

Q. Goods were sold on credit basis to Mr. Ram for Rs

10, 000

. It will be recorded in _______________.

Analyse the effect of each transaction and prove that the accounting equation (A = L + C) always remains balanced.
(i) Introduced Rs. 4,00,000 as cash and Rs. 25,000 by stock.
(ii) Purchased plant for Rs. 1,50,000 by paying Rs. 7,500 in cash and balance at a later date.
(iii) Deposited Rs. 3,00,000 into the bank.
(iv) Purchased office furniture for Rs. 50,000 and made payment by cheque.
(v) Purchased goods worth Rs. 40,000 for cash and for Rs. 17,500 on credit.
(vi) Goods amounting to 22,500 was sold for Rs. 30,000 on cash basis
(vii) Goods costing to Rs. 40,000 was sold for Rs. 62,500 on credit basis.
(viii) Cheque issued to the supplier of goods worth Rs. 17,500.
(ix) Cheque Received from customer amounting to Rs. 37,500.
(x) Withdrawn by the owner for personal use Rs. 12,500.

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