bill. The new bill was met on maturity by Mohan. In this case, the following

bill. The new bill was met on maturity by Mohan. In this case, the following entries will be recorded in the books of Ravi and Mohan. Books of Ravi Feb. Mohan’s A/c , To Sales A/c , (Sold goods to Mohan) Feb. Cash A/c , Bills Receivable A/c To Mohan’s A/c , (Received Rs. , in cash from Ravi and an acceptance for the balance) May Mohan’s Account , To Interest A/c (Cancelled old bill on renewal Rs. as interest) May Bill’s Receivable A/c Cash A/c To Mohan’s A/c , (Received new acceptance from Mohan) Jul. (Mohan met his new acceptance) Book of Mohan Feb. Purchases A/c , To Ravi A/c , (Purchased goods from Ravi) Feb. Ravi’s A/c , To Cash’s A/c , Bills Payable A/c (Received cash from Ravi and his acceptance) May Bill Payable A/c Interest A/c To Ravi A/c , (Old bill cancelled on renewal, Rs. charged as interest) May Ravi’s A/c , To Bills Payable A/c To Cash A/c (Accepted new bill and paid cash for interest) Jul. Bill Payable A/c (Met acceptance of the new bill on maturity)