Rama sold goods for ₹ 12,000 to Reshma on 1st January, 2023. On the same date Rama draws a bill on Reshma for ₹ 12,000 for a period of 3 months. On receipt of the bill on 1st January, 2023 duly accepted by Reshma, Rama discounts it with a bank at 6% p.a. On the date of maturity, the bill was dishonoured, the bank having to pay ₹ 500 as noting charges. Reshma paid the due amount less ₹ 500 in full settlement.

Show Journal entries arising from the above in the books of both Rama and Reshma.

Anurag Pathak Changed status to publish October 25, 2023