Question

Dishonour of the Bill discounted from the Bank
Q. 16. A sells goods for 30,000 to B on 1st January, 2017 and on the same day
draws a bill on B at three months for the amount. B accepts it and returns it to A, who
discounts it on 4th February, 2017 with his bank at 18% per annum. The acceptance is
dishonoured on the due date, the noting charges paid by the bank being 200.
On 4th April, 2017, B accepts a new bill at two months for the amount then due to
A together with interest at 12 per cent per annum.
Make Journal entries to record these transactions in the books of A and B​

Answer 1

Answer:

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