Bill of exchange question with answers

  Anand brought goods worth Rs. 4,500 from Samant on August 1, 2006. On the same day, Anand accepted the bill for Rs. 4,500 at 3 months drawn by Samant. Samant got the bill discounted with his bank at 4%. Before the due date, Anand informed Samant about his inability to pay the amount of bill. He further requested him to accept Rs. 2,500 in cash and immediately draw upon him a new bill for the remaining amount at 2 months together with interest at 8% p.a. Samant agreed. The second bill was duly paid on maturity. Give journal entries in the books of Samant and Anand.

Note: - Here 1^st part payment is made and then the interest is charged.

Date	Particulars	Jf	Debit	Credit
1.8.06	Anand’s account …… Dr. To sales a/c [being the goods are sold]		4500	4500
1.8.6	Bills receivable account ……… Dr. To Anand’s account [being the bill is drawn]		4500	4500
1.8.6	Cash / bank account ……… Dr. Discount account ……… Dr. To Bills receivable account [being the bill is discounted]		4455 45	4500
?	Anand’s account …… dr. To cash / bank account [being the bill is dishonoured]		4500	4500
?	Cash/ bank account To anand’s account [being the part payment is made]		2500	2500
?	Anand’s account To interest account [being the interest is charged]		27	27
?	Bills receivable account To anand’s account [being the new bill is drawn]		2027	2027
?	Cash/ bank account To bills receivable account [being the new bill is honoured]		2027	2027