Pankaj draws a bill on Anil worth Rs. 8,000 for three months which was accepted by Anil. On the same date Pankaj discounted the bill with his bank @ 10 % p.a. On the due date Anil dishonoured his acceptance. Anil paid Rs. 4,000/- to Pankaj and accepted a fresh bill for two months for the balance including interest of Rs. 40. Anil became insolvent before the maturity of the bill and 50 paise in a rupee was received at first and final dividend from his estate. Give Journal entries in the books of Anil.

 Journal Entries In the Books of Anil.

Date	Particulars	LF	Debit (Rs)	Credit (Rs)
? 1	Pankaj's A/c ....Dr.		8000
	To Bills Payable A/c			8000
	[Being the bill is accepted]
2	Bills Payable A/c ....Dr.		8000
	To Pankaj's A/c			8000
	[Being the bill is dishonoured]
3.	Interest A/c ....Dr.		40
	To Pankaj's A/c			40
	[Being the Interest is charged]
4	Pankaj's A/c ....Dr.		4000
	To Bank's A/c			4000
	[Being the part – payment is made]
5	Pankaj's A/c ....Dr.		4040
	To Bills Payable A/c			4040
	[Being the new bill is accepted along with interest]
6.	Bills Payable A/c ....Dr.		4040
	To Pankaj's A/c			4040
	[Being the new bill is dishonoured]
7	Pankaj's A/c ....Dr.		4040
	To Bank A/c			2020
	To Deficiency A/c			2020
	[Being the drawee become insolvent and only 50% of the amount could be received from our estate]