Rupali accepted a bill for Rs. 2,000/- drawn by Deepali at three months. Deepali got the bill discounted with her bank for Rs. 1,900. Before the due date Rupali approached Deepali for renewal of the bill. Deepali agreed on the condition that Rs. 1,000/- be paid immediately together with interest on the remaining amount at 6% p.a. For balance Rupali should accept a new bill for three months. These arrangements were carried through but afterwards, Rupali become Insolvent and only 40 % of the amount could be recovered from her estate. Give journal entries in the books of Rupali.

Journal Entries in the Books of Rupali

Date	Particulars	LF	Debit (Rs)	Credit (Rs)
?1	Deepali's A/c ....Dr.		2000
	To Bills Payable A/c			2000
	[Being the bill is accepted]
2	Bills Payable A/c ....Dr.		2000
	To Deepali's A/c			2000
	[Being the bill is dishonoured]
3	Interest A/c ....Dr.		15
	To Deepali's A/c			15
	[Being the interest is charged]
4	Deepali's A/c ....Dr.		1015
	To Bank A/c			1015
	[Being the part – payment is made along with interest]
5	Deepali's A/c ....Dr.		1000
	To Bills Payable A/c			1000
	[Being the new bill is accepted]
6	Bills payable A/c ....Dr.		1000
	To Deepali's A/c			1000
	[Being the new bill is dishonoured]
7	Deepali's A/c ....Dr.		1000
	To Bank A/c			400
	To Deficiency A/c			600
	[Being the drawee become insolvent and only 40% of the amount could be recovered from our estate]