A draws a bill of Rs 500 on B. On getting B's acceptance ,he endorses it to C and C to D. On maturity the bill is dishonoured noting charges amounted Rs 10 is paid . Give the journal entries in the books of A,B and c

Journal (In the books of A-drawer)

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

Bills Receivable A/c

Dr

500

  To B A/c

500

(being bill received from B for amount due)

C A/c

Dr

500

  To Bills Receivable A/c

500

(being bill endorsed to C)

 B A/c

Dr 

510 

  To C A/c

510

(being bill dishonoured,noting charges Rs 10)

Journal (In the books of B-drawee)

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

A A/c

Dr

500

  To Bills Payable A/c

500

(being bill accepted for amount due)

Bills Payable A/c

Dr

500

Noting Charges A/c

Dr

10

  To A A/c

510

(being bill dishonoured)

Journal (In the books of C-endorsee)

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

Bills Receivable A/c

Dr

500

  To A’s A/c

500

(being bill received from A)

D A/c

Dr

500

 To Bills Receivable A/c

500

(being bill endorsed to D)

A A/c

Dr

510

  To D A/c

510

(being bill dishonoured)