Chanda accepted a bill for Rs. 6,000 drawn by Nanda at three months. Nanda got the bill discounted with his bank for Rs. 5,700. Before the due date, Chanda approached Nanda for renewal of the Bill. Nanda agreed on the condition that Rs. 3,000 is paid immediately together with an interest on remaining amount at 18% p.a. for four months and for the balance Chanda should accept a new bill. But afterwards Chanda become insolvent and only 25% of the amount could be recovered from her estate. Pass journal entries in the books of Chanda.

Journal Entries In the Books of Chanda.

Date	Particulars	LF	Debit (Rs)	Credit (Rs)
? 1	Nanda's A/c ....Dr.		6000
	To Bills Payable A/c			6000
	[Being the bill is accepted]
2	Bills Payable A/c ....Dr.		6000
	To Nanda's A/c			6000
	[Being the bill is dishonoured]
3	Interest A/c ....Dr.		180
	To Nanda's A/c			180
	[Being the Interest is charged]
4	Nanda's A/c ....Dr.		3180
	To Bank A/c			3180
	[Being the part payment is charged along with interest]
5	Nanda's A/c ....Dr.		3000
	To Bills Payable A/c			3000
	[Being the new bill is accepted]
6	Bills Payable A/c ....Dr.		3000
	To Nanda's A/c			3000
	[Being the new bill is dishonoured]
7	Nanda's A/c ....Dr.		3000
	To Bank A/c			750
	To Deficiency A/c			2250
	[Being the drawee become insolvent and only 40 % of the amount could be received from our estate]