On 1st January, 2014 Archana drew a bill for Rs. 6,000 for 2 months periods on Ramya. Ramya duly accepted the bill. On 4th January 2014 Archana discounted the bill with her bank for Rs. 5850. However, on the due date the bill was dishonoured. Ramya agreed to accept a new bill with an interest of Rs. 150 for a period of one month. The bill was duly met on the due date. Give the journal entries in the books of Archana and show Archana’s account in the books of Ramya.

Journal Entries in the Books of Ramya.

Date	Particulars	LF	Debit (Rs)	Credit (Rs)
1.1.14	Bills Receivable A/c ...Dr.		6000
	To Ramya's A/c			6000
	[Being the bill is drawn]
4.1.14	Bank A/c ...Dr.		5850
	Discount A/c ...Dr.		150
	To Bills Receivable A/c			6000
	[Being the bill is discounted]
4.3.14	Ramya's A/c ...Dr.		6000
	To Bank A/c			6000
	[Being the discounted bill is dishonoured]
4.3.14	Ramya's A/c ...Dr.		150
	To Interest A/c			150
	[Being the Interest is charged]
4.3.14	Bills Receivable A/c ...Dr.		6150
	To Ramya's A/c			6150
	[Being the new bill is drawn along with interest]
7.4.14	Bank A/c ...Dr.		6150
	To Bills Receivable A/c			6150
	[Being the new bill is duly honoured]

In the Books of Ramya

Archana's A/c

Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
1.1.14	To Bills Payable A/c		6000	1.1.14	By Balance b/d		6000
4.3.14	To Bills Payable A/c		6150	4.3.14	By Bills Payable A/c		6000
				4.3.14	By Interest A/c		150
			12150				12150