Question

On 1st April, 2016, B accepts a bill drawn by A at three months for ₹ 8,000 in payment of debt. On the due date the acceptance is dishonoured and A gets the bill noted paying ₹ 100. On 4th July, 2016 A draws a new bill payable after 73 days provided interest is paid in cash @ 15% p.a. To this B is agreeable. The bill is met on maturity.
Record these transactions in the Journal of both the parties.

Answer 1

Books of A Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
Apr. 01	Bills Receivable A/c	Dr.		8,000
	To B				8,000
	(B accepted the bill)
July 04	B	Dr.		8,100
	To Bills Receivable A/c				8,000
	To Cash A/c				100
	(Bill dishonoured on due date and noting charges received)
July 04	B	Dr.		243
	To Interest A/c				243
	(Interest due to be received)
July 04	Cash A/c	Dr.		243
	Bills Receivable A/c	Dr.		8,100
	To B				8,343
	(B accepted the new bill)
Sept. 18	Cash	Dr.		8,100
	To Bills Receivable A/c				8,100
	(Bill honoured on maturity)

Books of B Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
Apr. 01	A	Dr.		8,000
	To Bills Payable A/c				8,000
	(Bill drawn by A, accepted)
July 04	Bills Payable A/c	Dr.		8,000
	Noting Charges A/c	Dr.		100
	To A				8,100
	(Bill dishonoured on due date and noting charges paid)
July 04	Interest A/c	Dr.		243
	To A				243
	(Interest due to be paid)
July 04	A	Dr.		8,343
	To Cash A/c				243
	To Bills Payable A/c (New)				8,100
	(New bill drawn by A, accepted)
Sept. 18	Bills Payable A/c	Dr.		8,100
	To Cash A/c				8,100
	(Bill honoured on maturity)

Working Note:

Calculation of amount of Interest

$\mathrm{Amount}\mathrm{of}\mathrm{Interest}=8,100\times \frac{15}{100}\times \frac{73}{365}=\mathrm{Rs}243$