A sold goods to B for ₹ 12,000. He took a bill at 3 months dated 1st July, 2023. On 4th August, A discounted the bill @ 5% p.a. with his bank. On maturity, the bill was returned by the bank as dishonoured with ₹ 10 as expenses. B paid ₹ 3,000 and gave A another bill at 3 months for ₹ 9,000 at 6% interest, but before maturity he had become insolvent and ulitmately paid his creditors 75 paise in a rupee.

Pass entries in A’s Journal recording the above transactions.

Anurag Pathak Changed status to publish October 25, 2023