Mr. A accepts two bills of exchange on June, 1,2024 for 1,50,000 and - 60,000 drawn on him by Mr. B. The bill of exchange for 1,50,000 is for two…

Journal Entries in the books of Mr. B Date 2024 Particulars Amount (₹) Dr. Amount (₹) Cr. 1 st June Bills receivable (No.1) A/c Dr. Bills receivable (No.2) A/c Dr. To Mr. A’s A/c (Being drawing of bills receivable No.1 due for maturity on 4.8.2024 and bills receivable No.2 due for maturity on 4.9.2024) 1,50,000 60,000 2,10,000 3 rd June Bank A/c Dr. Discount A/c Dr. To Bills receivable (No.1) A/c (Being1 st bill discounted from bank) 1,49,000 1,000 1,50,000 2 nd August Mr. A’s A/c Dr. To Bank A/c To Bills receivable (No.2) A/c (Being the reversal entry for cancellation of both the bills) 2,10,000 1,50,000 60,000 2 nd August Bills receivable (No.3) A/c Dr. To Interest A/c To Mr. A’s A/c (Being the bill of exchange no.3 drawn together with interest at 12 %p.a. in lieu of the original acceptance of Mr. A) 2,14,200 4,200 2,10,000 3 rd Sep* Bank A/c Dr. Bad Debts A/c Dr. To Bills Receivable (No.3) A/c (Being the amount received from official assignee of Mr. A at 40 paise per rupee against dishonoured bill) 85,680 1,28,520 2,14,200 Alternatively, two separate entries can also be passed in place of entry pertaining to 3 rd September. Date Particulars Amount (₹) Dr. Amount (₹) Cr. 3 rd Sep. Mr. A’s A/c Dr. To Bills receivable (No.3) A/c (Being the amount due from Mr. A on dishonour of his acceptance on presentation on the due date) 2,14,200 2,14,200 3 rd Sep. Bank A/c Dr. Bad Debts A/c Dr. To Mr. A’s A/c (Being the amount received from official assignee of Mr. A at 40 paise per rupee against dishonoured bill) 85,680 1,28,520 2,14,200