Question

A Bill receivable for ₹ 10,000, which had been discounted for ₹ 9,700, is dishonoured and the Bank paid ₹ 20 as noting charges.
Pass entries in the books of drawer and drawee.

Answer 1

Books of Drawer Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Drawee’s A/c	Dr.		10,020
	To Bank A/c				10,020
	(Discounted bill dishonoured and noting charges paid)

Books of Drawee Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bills Payable A/c	Dr.		10,000
	Noting Charges A/c	Dr.		20
	To Drawer’s A/c				10,020
	(Bills dishonoured and noting charges paid)