BILL OF EXCHANGE QUESTION WITH ANSWER

         Bhagyashri sold goods worth `. 24,000 to Rupa. 

          On the next day Rupa paid `. 10,000 in cash and accepted 4 months bill for the balance amount drawn by Bhagyashri.

          Bhagyashri discounted the bill at 10% p.a. after one month with her bank.

          On due date Rupa dishonoured her acceptance and noting charges amounted to `. 200.

          Rupa paid half the amount of the bill and full amount of noting charges.

          Rupa accepted a new bill at 2 months for the balance amount plus interest`. 100.

          Pass necessary journal entries in the books of Bhagryashri.

In the books of Bhagyashri

Journal Entries

Date	Particulars	LF	Debit (`.)	Credit (`.)
1	Rupa A/c………………………………Dr.      To Sales A/c (Being goods sold)		24,000	24,000
2	Cash A/c………………………………Dr.      To Rupa A/c (Being cash received from Rupa)		10,000	10,000
3	Bills Receivable A/c…………………Dr.      To Rupa A/c (Being bill drawn and accepted due after 4 months)		14,000	14,000
4	Bank A/c………………………………Dr. Discount A/c…………………………Dr.      To Bills Receivable A/c (Being bill discounted with bank @ 10% after one month)		13650 350	14,000
5	Rupa A/c……………………………….Dr.      To Bank A/c (Being bill dishonoured and incurred noting charges)		14,200	14,200
6	Cash / Bank A/c……………………..Dr.      To Rupa A/c (Being part payment received along with noting charges)		7,200	7,200
7	Rupa A/c………………………………..Dr.      To Interest A/c (Being interest received)		100	100
8	Bills Receivable A/c…………………..Dr.      To Rupa A/c (Being new bill drawn and accepted due after 2 months along with interest)		7,100	7,100
			90,600	90,600