X draws 3 bills of rs 10,000 , rs 8,000 and rs 2,000 for 3 months , 2 months and 1 month respectively.
The first bill is discounted immediately at 1%. The second bill was honoured on maturity but the other 2 bills were dishonored with noting charges of rs 20 on each bill.
On Y's request, a new bill for rs 19000 was drawn and duly accepted. The fourth bill was honoured on maturity.
