Question

A sold goods to the value of Rs. 12,000 to B, taking a bill at 3 months, dated 1st July, 2009.

On 4th August, A discounted the bill at 5% p.a. with his bankers. At maturity the bill was

renewed and another bill was dishonoured, B paid Rs. 3,000 as noting charges and accepted

another bill at 3 months for Rs. 9,000 at 6% interest, but before maturity he became insolvent,

and ultimately paid his creditors 75 paise in the rupee.

Make the entries in A’s Journal according the above transactions.

Answer 1

that it is..........