Question

On 1st Jan 2019 Verma drew a bill for Rs. 7,000 maturing after 2 months. It was accepted by Chetan. Verma endorsed it to Mona in settlement of his liability of Rs. 7,100. It was dishonoured and Mona paid Rs. 20 as noting charges. Give journal entries in the books of Drawer
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Answer 1

Answer:

journal

1st jan. B/R.a/c. Dr. 7000

To Chetan. 7000

1st jan. Mona. Dr. 7100.

To B/R. 7000

To discount received 100

4mar. Chetan. Dr. 7020

To Mona. 7020