Y draws 2 bills of rs 15,000 and rs 10,000 for 2 months and 1 month respectively on X. The first bill was discounted at rs 14,950. On the due date all the bills were Dishonored with noting charges of rs 20 each . On X's request,Y draws a new bill for rs 25,200 for 1 month. On the due date, the bill was honoured. Pass the journal entries in the books of X and Y

Dear Student
JOURNAL ENTRIES

In the books of Y 
 

Date Particulars Amount (Dr) Amount (Cr)
  Bills Receivable 1 A/c                 Dr 15000  
  Bills Receivable 2 A/c                  Dr 10000  
       To X   25000
  (bills accepted)    
       
  Bank A/c           Dr 14950  
  Discount A/c      Dr 50  
       To Bills Receivable 1 A/c    15000
  (first bill discounted)    
       
  X                                     Dr  25040  
       To Bank A/c    15020
       To Bills Receivable 2 A/c   10020
  (both bills dishonoured with Rs 20 noting charges on each )    
       
  Bills Receivable 3 A/c                          Dr 25200  
         To X   25200
  (new bill accepted)    
       
  Bank A/c                                           Dr 25200  
        To Bills Receivable 3 A/c   25200
  (amount received on maturity)    


In the books of X
Date Particulars Amount(Dr) Amount (Cr)
  Y                   Dr 25000  
       To Bills payable 1 A/c     15000
        To Bills Payable 2 A/c     10000
  (acceptance of bills )    
       
  Bills Payable 1 a/c           Dr 15020  
  Bills Payable 2 A/c           Dr 10020  
           To Y   25040
  ( bills dishonoured)    
       
  Y                     Dr 25200  
       To Bills Payable 3A/c   25200
  (new bill acceptance)    
       
  Bills Payable 3 A/c             Dr 25200  
        To Bank A/c    25200
  ( amount paid on maturity of bill)    
       
       



Regards

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