Y owed X ₹ 15,000 who drew on him one bill for ₹ 10,000 payable 2 months after date and other for ₹ 5,000 payable 3 months after date. X discounted the first bill with his bank @ 6% p.a. and endorsed the second bill in favour of his creditor Z. The first bill was met on maturity but the second was dishonoured. Z paid ₹ 50 as noting charges. On 1st October, Y cleared his account to X by paying ₹ 5,100 which included ₹ 50 as interest.

Pass necessary Journal entries in the books of both X and Y.

Anurag Pathak Changed status to publish October 25, 2023