To Bills Payable A/c , (The amount of the promissory note sent to Rohit) Aug. Bills Payable A/c , Noting charges A/c To Rohit’s A/c , (The dishonour of the promissory note and Rs. being payable as noting charges to Rohit) Aug. Interest A/c Rohit’s A/c (Interest due to Rohit from part renewal of the promissory) Aug.
Rohit’s A/c , To Bills Payable A/c To Cash A/c , (Payment of Rs. , in cash and a new promissory note for Rs. , sent to Rohit to settle his account) Oct. Bill Payable A/c To Rohit’s A/c (Cancellation of the bill due today) Oct.
Interest A/c To Rohit’s A/c (The amount due as interest ot Rohit on the renewed bill) Oct. Rohit’s A/c , To Cash A/c To Bills Payable A/c (The new acceptance and cash sent to Rohit) Jan. Bills Payable A/c To Cash A/c (Payment made to meet the bill due this day) Book of Rohit May Bills Receivable A/c , To Mohit’s A/c , (Mohit’s promissory note received this day) May Bank’s A/c , Discount A/c , (The discounting of the promissory note by Mohit at % on Rs. , for months) Aug.
Mohit’s A/c , , (The dishonour of the promissory not by Mohit Rs. being charged by bank for noting charges) Aug. Mohit’s A/c Interest A/c (The amount agreed to be paid as interest by Mohit) Aug. Cash A/c , Bills Receivable A/c To Mohit’s A/c , (Cash and promissory note received from Mohit for the amount due from him) Oct.
Mohit’s A/c To Bills Receivable A/c (Cancellation of the bill due today) Oct. Mohit’s A/c To Interest A/c (The amount due from Mohit as interest) Oct. Cash A/c Bills Receivable A/c To Mohit’s A/c , (Cash and promissory not received from Mohit) Jan. Cash/Bank A/c (Mohit met his acceptance on maturity) Test Your Understanding - III Fill in the blanks: (i) A bill of exchange is a .
(ii) A bill of exchange