A sold goods to B for Rs 4,000n drew a bill for the amount due B after givin his - Accountancy - Bills of Exchange

Question

A sold goods to B for Rs 4,000n drew a bill for the amount due
B after givin his acceptance, returned the bill to A
A discounted it from his bank for Rs 3,900
On due date, bill returned dishonoured n bank paid Rs 50 as noting
charges
After one week B paid the full amount of the bill including the
noting charges

Give journal entries in the book of A only

R C Gupta · Answer

(1) B Dr 4000/- To Sales a/c 4000/-
(2)B/R a/c Dr 4000 To B 4000/-
(3)Bank a/c Dr 3900, Discounting Charges a/c Dr 100, To B/R a/c
4000/-
(4) B Dr 4050 To Bank a/c 4050
(5)Cash a/c Dr 4050 To B 4050