Question

On 1st January, 2015, P draws three months bill of exchange for 30,000 on his debtor, Q who accepts it on the same date. P discounts the bill on 4th January, 2015 with his bankers, the discount rate being 6% p.a. On the due date, the bill is dishonored, the noting charges being `200. Q immediately makes an offer to P to pay him 10,000 cash on account and to settle the balance by agreeing to accept one bill of exchange for 12,000 at one month and the other for the balance at three months, the latter including at 12% p.a. for both the bills. P accepts the arrangement. The bill for 12,000 is met on the due date, but the other bill is dishonored. Show Q's Account and Bills Receivable Account in the books of P.​

Answer 1

Answer:

P discounts the bill on 4th January, 2015 with his bankers, the discount rate being 6% p.a. On the due date, the bill is dishonored.