On 1st January, 2023, A drew upon B for goods sold, a bill at 3 months for ₹ 10,000. A discounted the bill with his bank, who charged ₹ 150 for discounting the bill. On due date, the bill was dishonoured and the bank paid ₹ 100 as noting charges. On 10th April, 2023, B accepted a new bill for ₹ 10,250 payable after 3 months. On 1st July, 2023, before the bill matured, B was declared insolvent and a firs and final dividend of 25 paise in a rupee was received from his private estate on 31st July, 2023.

Pass Journal entries in A’s books and show how B’s Account will appear in A’s Ledger.

Anurag Pathak Changed status to publish October 25, 2023
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