Question

A sold goods to B on 30th October, 2016
for 14,000 and received three bills
or 2,000, 4,000 and 8,000 at 2, 3
and 4 months duration respectively.
He kept the first bill till maturity;
endorsed the 2nd bill in favour of his
creditor Cand discounted the third bill
on 3rd December, 2016 @18% p.a. The
first and 2nd bills were duly met on
maturity but the third bill was
dishonoured, the bank paying 40 as
noting charges. On 3rd March, 2017, B
paid 3,000 and the noting charges in
cash and accepted a new bill at 3
months after date for the balance plus
* 150 as interest. The new bill was met
on maturity. Give Journal entries in the
books of A and B both.​

Answer 1

Explanation:

A sold goods to B on 30th October