Question

On 1st Jan., 2016, Satish drew on Harish three bills of exchange in full settlement of claims, the first for ₹ 14,000 at one month; the second for ₹ 16,000 at two months and the third for ₹ 18,000 at three months. The bills were duly accepted by Harish. The first bill was endorsed by Satish to his creditor Rajnish on 3rd Jan., 2016.
The second bill was discounted on 15th Jan. for ₹ 15,900 and the third bill was sent to bank for collection on 4th Feb. All the bills were met on maturity except the second bill which was dishonoured, noting charges being paid ₹ 240. Satish charged ₹ 300 for interest from Harish and drew on him a fourth bill for two months for ₹ 16,540. The fourth bill was duly met on maturity.
Give Journal entries in the books of Satish and Harish.

Answer 1

Books of Satish Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
Jan. 01	Bills Receivable A/c (1)	Dr.		14,000
	Bills Receivable A/c (2)	Dr.		16,000
	Bills Receivable A/c (3)	Dr.		18,000
	To Harish				48,000
	(Harish accepted bills)
Jan. 03	Rajnish	Dr.		14,000
	To Bills Receivable A/c (1)				14,000
	(Bill endorsed in favour of Rajnish)
Jan. 15	Bank A/c	Dr.		15,900
	Discounting Charges A/c	Dr.		100
	To Bills Receivable A/c (2)				16,000
	(Bills discounted with bank at discount of Rs 100)
Feb. 04	Bill Sent for Collection A/c	Dr.		18,000
	To Bills Receivable A/c (3)				18,000
	(Bill sent to bank for collection)
Mar. 04	Harish	Dr.		16,240
	To Bank A/c				16,240
	(Bill dishonoured on due date and noting charges paid)
Mar. 04	Harish	Dr.		300
	To Interest A/c				300
	(Interest due to be received)
Mar. 04	Bills Receivable A/c (4)	Dr.		16,540
	To Harish				16,540
	(Harish accepted the new bill)
Apr. 04	Bank A/c	Dr.		18,000
	To Bills Sent for Collection A/c				18,000
	(Bill honoured on due date)
May 07	Cash A/c	Dr.		16,540
	To Bills Receivable A/c (4)				16,540
	(Bill honoured on due date)

Books of Harish Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
Jan. 01	Satish	Dr.		48,000
	To Bills Payable A/c (1)				14,000
	To Bills Payable A/c (2)				16,000
	To Bills Payable A/c (3)				18,000
	(Bill drawn by Satish, accepted)
Feb. 04	Bills Payable A/c (1)	Dr.		14,000
	To Cash A/c				14,000
	(Bill honoured on due date)
Mar. 04	Bills Payable A/c (2)	Dr.		16,000
	Noting Charges A/c	Dr.		240
	To Satish				16,240
	(Bill dishonoured on due date and noting charges paid)
Mar. 04	Interest A/c	Dr.		300
	To Satish				300
	(Interest due to be paid)
Mar.04	Satish	Dr.		16,540
	To Bills Payable A/c (4)				16,540
	(New bill drawn by Satish, accepted)
Apr. 04	Bills Payable A/c (3)	Dr.		18,000
	To Cash A/c				18,000
	(Bill honoured on due date)
May 07	Bills Payable A/c (4)	Dr.		16,540
	To Cash A/c				16,540
	(Bill honoured on due date)