Jain purchased goods worth Rs. 3,000 from Sharma on 1st June 1977 and gave him acceptance on 3rd June for a period of three months. On 15th June Sharma discounted the bill for Rs. 2980. On 6th September, when the bill was presented for payment. Jain dishonoured the same. Rs. 20 was paid as noting charges. Pass journal entries in the books of Sharma and Sharma’s account in the books of Jain.

Journal Entries in the Books of Sharma

Date	Particulars	LF	Debit (Rs)	Credit (Rs)
1.6.77	Jain's A/c ....Dr.		3000
	To Sales A/c			3000
	[Being the Goods Are sold]
3.6.77	Bills Receivable A/c ....Dr.		3000
	To Jain's A/c			3000
	[Being the bill is drawn]
15.6.77	Bank A/c ....Dr.		2980
	Discount A/c ....Dr.		120
	To Bills Receivable A/c			3000
	{Being the bill is discounted]
6.9.77	Jain's A/c ....Dr.		3020
	To Bank A/c			3020
	[Being the discounted bill is dishonoured along with Noting Charges]

In the Books of Jain

Sharma's A/c

Date	Particulars	J F	Amount	Date	Particulars	J F	Amount
3.6.77	To Bills Payable A/c		3000	1.6.77	By Purchases A/c		3000
6.9.77	To balance b/d		3020	6.9.77	By Bills Payable A/c		3000
				6.9.77	By Noting Charges		20
			6020				6020