A made a bill on B FOR 2000 in full settlement of 2050 on 1 feb 2015 for 3 months.A endorsed it to C on 5 march in full settlement of 2100 and bill met on due date pass entries in Aand C

In the books of A

Bills receivable a/c....dr 2000
disc. allowed a/c......dr 50
To B a/c 2050
(beind bills receivable and
discount allowed)

C a/c ....dr a/c. 2100
To bills receivable a/c. 2000
To disc.received a/c. 100
(being bill endorsed
to C and disc.received)

In the books of C
Bills receivable a/c...dr 2000
discount allowed a/c...dr 100
To A a/c. 2100
(being bill received from A in
full settlement)

cash a/c......dr. 2000
To bills receivable a/c. 2000
(being bill honoured)
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