Salman draws a bill on Amithab worth Rs. 90,000 for three months which was accepted by Amithab. On the same date Salman discounted the bill with his bank @ 10 % p.a. On the due date Amithab dishonoured his acceptance. Amithab paid Rs. 40,000/- to Salman and accepted a fresh bill for two months for the balance including interest of Rs. 4000. Amithab became insolvent before the maturity of the bill and 50 paise in a rupee was received at first and final dividend from his estate. Journal entries books of Amithab.

Journal Entries in the Books of Amithab.

Date	Particulars	LF	Debit (Rs.)	Credit (Rs.)
? 1	Salman's A/c ....Dr.		90000
	To Bills Payable A/c			90,000
	[Being the bill is accepted]
2	Bills Payable A/c ....Dr.		90000
	To Salman's A/c			90000
	[Being the bill is dishonoured]
3	Interest A/c ....Dr.		4000
	To Salman's A/c			4000
	[Being the interest is charged]
4	Salman's A/c ....Dr.		40000
	To Bank A/c			40000
	[Being the part payment is made]
5	Salman's A/c ....Dr.		54000
	To Bills Payable A/c			54000
	[Being the new bill is accepted together with interest]
6	Bills Payable A/c ....Dr.		54000
	To Salman's A/c			54000
	[Being the new bill is dishonoured]
7	Salman's A/c ....Dr.		54000
	To Bank A/c			27000
	To Deficiency A/c			27000
	[Being the drawee become Insolvent and only 50% of the amount could be recovered from his estate. ]