Ronaldo owes Ricardo Rs.80,000. Ricardo then draws a bill for Rs. 80,000 on Ronaldo for a period of three months. Ronaldo accepts and return it to Ricardo. Ricardo discounted the bill with his bank @ 10 % p.a. On due date, the bill was dishonoured noting charges amount to Rs. 300. Ricardo then draws a bill for the balance plus interest of Rs. 1700. Before the due date of this bill Ronaldo pays the amount at a discount of Rs. 400 to retire the bill. Journal Entries Ronaldo.

Journal Entries in the Books of Ronaldo.

Date	Particulars	LF	Debit (Rs. )	Credit (Rs.)
1	Ricardo's A/c ..... Dr.		80000
	To Bills Payable A/c			80000
	[Being the bill is accepted]
2	Bills Payable A/c ..... Dr.		80000
	To Ricardo's A/c			80000
	[Being the bill is dishonoured]
3	Noting charges A/c ..... Dr.		300
	To Ricardo's A/c			300
	[Being the Noting Charges is Charged]
4	Interest A/c ..... Dr.		1700
	To Ricardo's A/c			1700
5	Ricardo's A/c ..... Dr.		82000
	To Bills Payable A/c			82000
	[Being the new bill is accepted together with noting charges and interest]
6	Bills Payable A/c ..... Dr.		82000
	To Bank A/c			81600
	To Discount A/c			400
	[Being the new bill is retired]