Question

19. On 01.01.16, B accepts two bills for Rs. 5000 and Rs. 6000 respectively, the amount payable
to A. First bill is payable after two months and second bill is payable after three months. On
04.02.16, A gets the second bill discounted from bank at a discount of Rs. 400. On 15.02.16,
First bill of Rs. 5000 is endorsed in favour of C in full and final settlement of Rs. 5500 due to
him. The first bill is duly honoured on the due date. However, the second bill is dishonoured and
bank pays Rs. 50 as noting charges.
Pass journal entries in the books of A and B.
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Answer 1

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