Sagar owes Sindhu Rs. 8000 Sagar accepted a bill for 3 months by Sindhu for Rs. 8000. Sindhu discounted the bill with bank at Rs. 7800. On the due date, the bill was dishonoured. Noting charges amounted to Rs. 20. Sagar Paid half the amount of the bill and full amount of the noting charges including interest of Rs. 100. Pass journal entries in the books of Sindhu and show the account of Sagar.

Journal Entries in the Books of Sindhu

Date	Particulars	LF	Debit (Rs)	Credit (Rs)
1.	Bills Receivable A/c ....Dr.		8000
	To Sagar's A/c			8000
	[Being the bill is drawn]
2.	Bank A/c ....Dr.		7800
	Discount A/c ....Dr.		200
	To Bills Receivable A/c			8000
	[Being the bill is discounted]
3.	Sagar's A/c ....Dr.		8020
	To Bank A/c			8020
	[Being the discounted bill is dishonoured along with noting charges]
4	Sagar's A/c ....Dr.		100
	To Interest A/c			100
	[Being the Interest is Charged]
5	Bank A/c ....Dr.		4120
	To Sagar's A/c			4120
	[Being the part payment is made along with Interest and Noting Charges]]
6	Bills Receivable A/c ....Dr.		4000
	To Sagar's A/c			4000
	[Being the new bill is drawn]

In the Books of Sindhu

Sagar's A/c

Date	Particulars	J F	Amount	Date	Particulars	J F	Amount
?	To Balance b/d		8000	1.	By Bills Receivable A/c		8000
2.	To Bank A/c		8020	4.	By Bank A/c		4120
3.	To Interest A/c		100	5	By Bills Receivable A/c		4000
			6120				6120