Sun draws a bill on Moon for Rs. 15,000 at 3 months. Moon accepts the bill and return to Sun. Sun discounted the bill @ 10 % p.a. with the bank. On Maturity Moon finds herself unable to make payment of the bill and requested Sun to renew the bill. Sun accepts the proposal on the condition that Moon should Pay Rs. 12,000 in cash and accept a new bill at one month along with interest at 10% p.a. These arrangements were carried through. Moon retires the bill by paying Rs. 3015/- Pass Journal Entries in the books of Sun.

Journal Entries in the books of Sun

Date	Particulars	LR	Debit (Rs)	Credit (Rs)
? 1	Bills Receivable A/c ......Dr.		15000
	To Moon's A/c			15000
	[Being the bill is drawn]
2	Bank A/c ......Dr.		14625
	Discount A/c ......Dr.		375
	To Bills Receivable A/c			15000
	[Being the bill is discounted]
3.	Moon's A/c ......Dr.		15000
	To Bank's A/c			15000
	[Being the discounted bill is dishonoured]
4	Moon's A/c ......Dr.		25
	To Interest A/c			25
	[Being the interest is charged]
5	Cash A/c ......Dr.		12000
	To Moon's A/c			12000
	[Being the part payment is made]
6	Bills Receivable A/c ......Dr.		3025
	To Moon's A/c			3025
	[Being the new bill is drawn along with interest]
7	Bank A/c ......Dr.		3015
	Rebate A/c ......Dr.		10
	To Bills Receivable A/c			3025
	[Being the new bill is retires]