Amar sold goods to Baren for ₹ 40,000 on 1st January, 2023. Baren accepted a bill for 3 months on that date for ₹ 40,000. Amar discounted the bill @ 10% p.a. with his bank on 4th January, 2023. On maturity the bill was returned by bank as dishnoured with ₹ 250 as noting charges. Then Baren paid ₹ 10,000 and noting charges in cash and gave another bill for ₹ 30,000 for 3 months with interest @ 10% p.a. Before maturity, Baren became insolvent and his estate paid a dividend of 50 paise in a rupee.
Show Journal entries and Baren’s Account in the books of Amar.x