On February 14, 2011, Rashmi sold good Rs. 7,500 to Alka. Alka paid Rs. 500 in cash and for the bank balance accepted a bill of exchange drawn upon her by Rashmi payable after two months. On April 10, 2011, Alka approached Rashmi to cancel the bill since she was short of funds. She further requested Rashmi to accept Rs. 2,000 in cash and draw a new bill for the balance including interest Rs. 500. Rashmi accepted Alka's request and drew a new bill for the amount due payable after 2 months. the bill was accepted by Alka. The new bill was duly met by alka on maturity.
Record the necessary Journal entries in the books of Rashmi and Alka and prepare Alka's Account in the books of Rashmi's and Rashmi's account in the books of Alka.

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On Feb. 14, 2017 Rashmi sold good Rs 7,500 to Alka. Alka paid Rs 500 in cash and for the bank balance accepted a bill of exchange drawn upon her by Rashmi payable after two months. On Apr.10, 2017 Alka approached Rashmi to cancel the bill since she was short of funds. She further requested Rashmi to accept Rs 2,000 in cash and draw a new bill for the balance including interest Rs 500. Rashmi accepted Alka’s request and drew a new bill for the amount due payable after 2 months. The bill was accepted by Alka. The new bill was duly met by Alka on maturity.

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Q. On January

1

2011

, Vibha sold goods worth Rs.

18, 000

to Sudha and drew upon the latter a bill of exchange for the same amount payable after two months. Sudha accepted Vibha's draft and returned the same to Vibha after acceptance. Vibha endorsed the bill immediately in favour of her creditor Geeta. Five days before the maturity of the bill Sudha requested Vibha to cancel the bill since she was short of funds. She further requested to draw a new bill upon her including interest of Rs.

200

. Vibha accepted Sudha's request. Vibha took the bill from Geeta by making the payment to her in cash and cancelled the same. Then. she drew a new bill upon Sudha as agreed. The new bill was payable after one month. The new bill was duly met by Sudha on maturity.
Record the necessary Journal entries in the books of Vibha.

On 1st January, 2016, V sold goods worth Rs. 36,000 to S and drew upon the latter bills of exchange for the same amount payable afte two months. S accepted V's draft and returned the same to V after acceptance. V endorsed the bill immediately in favour of his creditor G. Five days before the maturity of the bill S requested V to cancel the bill since he was in short of funds. He further requested to draw a new bill upon him including interest of Rs. 400. V accepted S's request. V took the bill from G by making the payment to him in cash and cancelled the same. Then he drew a new bill upon S as agreed. The new bill was payable after one month. The new bill was duly met by S on maturity.
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