Accomodation bill of exchange

Accomodation bill of exchange Before the due e of the second bill, X becomes bankrupt and Y receives the rupee in full satisfaction. Pass necessary joumal entries in thy books Of X• anuary 1998 Amal for mutual accommodation of himself and Bimal drew upon the latter a . Amal discounted the bill at 18 per cent on months ill for Rs. 40,000 which was duly ac uary• and remitted half the proceeds to Bimal. On 1st February 1998 Bimal drew and Amal accepted a bill at three months for Rs. 16,000.0n4th ebruary Bimal discounted the bill at 18 per cent and remitted half the proceeds to Amay At maturity Amal met his acceptance, but Bimal failed to meet his and Amal agreed to take it up. Amal drew and Bimal accepted a new bill at 2 months on 4th May for the amount due to Amal plus Rs 400 interest. On 1st July Bimal become insolvent and a first and final dividend of 50 paise in the rupee 'was received from his estate on 30th September 1998. You are required to write up Bimal' s Account in the books of Amal.

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