same amount payable after months. Akhil accepted the bill and sent it back to Nikhil. Nikhil discounted the bill immediately with his bank @ p.a. On the due date Akhil dishonoured the bill of exchange and the bank paid Rs.
as noting charges. Akhil requested Nikhil to draw a new bill upon him with interest @ % p.a. which he agreed. The new bill was payable after two months.
A week before the maturity of the second bill Akhil requested Nikhil to cancel the second bill. He further requested to accept Rs. , in cash immediately and drew a third bill upon him including interest of Rs. .
Nikhil agreed to Akhil’s request. The third bill was payable after one month. Akhil met the third bill on its maturity. record the necessary journal entries in the books of Nikhil and Akhil and also prepare Akhil’s account in the books of Nikhil and Nikhil’s account in the books of Akhil.
. On Jan , Vibha sold goods worth Rs. , 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. .
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. . Following was the position of debtor and creditor of Gautam as on .
. . Debtors Creditors Babu , - Chanderkala , - Kiran , - Anita , - Anju - , Sheiba - , Manju - , The following transactions took place in the month