Harry draws a bill on Sejal for 60,000 on 01.01.2023 for 3 months. Sejal accepts the bill and sends it back to Harry to get it discounted for…

In the books of Sejal Journal Entries Date Particulars DR. (in ₹) CR. (in ₹) 1/1/2023 Harry A/c 60,000 To Bills payable A/c 60,000 (Being bill of exchange accepted and sent to Mr. Harry) 1/1/2023 Bank A/c 14,000 Discount charges A/c 1,000 To Harry A/c 15,000 (Being the amount received from Harry on account of the bills receivable) 4/4/2023 Bills receivable A/c 80,000 To Harry A/c 80,000 (Being the bills accepted by Harry) 4/4/2023 Bank A/c 74,600 Discount charges A/c 5,400 To Bills receivable A/c 80,000 (Being Harry acceptance discounted with bank) 4/4/2023 Bills payable A/c 60,000 To Bank A/c 60,000 (Being the amount met on the due date) 4/4/2023 Harry A/c 15,000 To Bank A/c 10,950 To Discount A/c {(₹ 5,400/80,000) x 60,000} 4,050 (Being the amount paid and the discount debited to Harry) 7/7/2023 Harry A/c 80,000 To Bank A/c 80,000 (Being Harry’s acceptance discounted with bank dishonoured due to Harry’s bankruptcy) 7/7/2023 Bank A/c 24,000 Bad debts A/c 36,000 To Harry A/c 60,000 (The amount received from Harry and the balance being written off as debt) Harry ‘s A/c Particulars ₹ Particulars ₹ To Bills Payable A/c 60,000 By Bank A/c 14,000 To Bank A/c 10,950 By Discount A/c 1,000 To Discount A/c 4,050 By Bills Receivable 80,000 To Bank A/c 80,000 By Bank A/c 24,000 By Bad Debts 36,000 1,55,000 1,55,000