Ameet draws a bill for Rs. 7500 on Tushar for four months. Ameet discounts the bill with the bank at 8%p.a. On the due date Tushar requested Ameet to accept Rs. 4,700 (including Rs. 200 for interest) and to draw a bill for the balance of three months. Ameet agrees this proposal. Before the due date of the new bill Tushar retires the bill for Rs. 2960. Pass the journal entries in the books of Tushar and open Tushar’s account in the books of Ameet.Journal Entries in the Books of Tushar

Journal Entries in the Books of Tushar  

Date	Particulars	LF	Debit (Rs)	Credit (Rs)
? 1	Ameet's A/c ....Dr.		7500
	To Bills Payable A/c			7500
	[Being the bill is accepted]
2	Bills Payable A/c ....Dr.		7500
	To Ameet's A/c			7500
	[Being the bill is dishonoured]
3	Interest A/c ....Dr.		200
	To Ameet's A/c			200
	[Being the Interest is charged]
4	Ameet's A/c ....Dr.		4700
	To Bank A/c			4700
	[Being the part payment is made]
5	Ameet's A/c ....Dr.		3000
	To Bills Payable A/c			3000
	[Being the part payment is made]
6.	Bills Payable A/c ....Dr.		3000
	Bank A/c ....Dr.			2960
	To Discount A/c			40
	[Being the new bill is retired]

In the Books of Ameet  

        

Tushar's A/c

Date	Particulars	J F	Amount	Date	Particulars	J F	Amount
?	To Balance b/d		7500	1.	By Bills Receivable A/c		7500
2.	To Bills Receivable A/c		7500	4.	By Bank A/c		4700
3.	To Interest A/c		200	5	By Bills Receivable A/c		3000
			15200				15200