of exchange for the same amount payable after two months. Lilly immediately discounted the bill with her bank at % p.a. The maturity date of the bill was a non business day (holiday), therefore, Lilly had to present the bill as per the provisions of the Indian Instruments Act. .
The bill was dishonoured by Methew and Lilly paid Rs. as noting charges. Methew settled the claim of Lilly five days after the disonour of the bill by a cheque, whch includes interest @ % for the term of the bill. Journalise the above transactions in the books of Lilly and Methew and prepare Mathew’s account in the books of Lilly and Lilly’s account in the books of Mathew.
. Kapil purchased goods for Rs. , from Gaurav on . .
and accepted a bill of exchange drawn by Gaurav for the same amount. The bill was payable after one month. On . .
Gaurav sent the bill to his bank for collection. The bill was duly presented by the bank. Kapil dishonoured the bill and the bank paid Rs. as noting charges.
Record the necessary journal entries for the above transactions in the books of Kapil and Gourav. . On Feb. , Rashmi sold good Rs.
, to Alka. Alka paid Rs. in cash and for the bank balance accepted a bill of exchange drawn upon her by Rashmi payable after two months. On Apr.
, Alka approached Rashmi to cancel the bill since she was short of funds. She further requested Rashmi to accept Rs. , in cash and draw a new bill for the balance including interest Rs. .
Rashmi accepted Alka’s request and drew a new bill for the amount due payable after 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 prepared Alka’s account in the books of Rashmi’s and Rashmi’s account in the books of Alka’s .
Nikhil sold goods for Rs. , to Akhil on Dec. , . He drew upon Akhil a bill of exchange for the