Mukesh owes Anil Rs. 40000 for which Anil draws a bill for 2 months on 1st February, 2014. Mukesh accepts it and returns it to Anil. On 4th March, 2014, Mukesh approaches Anil and request him to accept Rs. 10000 in cash and draw a fresh bill for 3 months for the balance plus interest @ 10% p.a. Anil accepts the request and draw a bill accordingly which is accepted by Mukesh. On 1st June 2014 Mukesh retired his acceptance under discount of Rs. 30/-. Pass journal entries in the books of Anil and prepare Anil account in the ledger of Mukesh.

Journal Entries in the books of Anil.

Date
Particulars
LF
Debit (Rs)
Credit (Rs)
1.2.14
Bills Receivable A/c ...Dr.

40000


To Mukesh's A/c


40000

[Being the bill is drawn]



4.3.14
Mukesh's A/c ...Dr.

40000


To Bills Receivable A/c


40000

[Being the bill is dishonoured]



4.3.14
Mukesh's A/c ...Dr.

750


To Interest A/c


750

[Being the Interest is charged]



4.3.14
Cash A/c ...Dr.

10000


To Mukesh's A/c


10000

[Being the part payment is made]



4.3.14
Bills Receivable A/c ...Dr.

30750


To Mukesh's


30750

[Being the new bill is drawn along with interest]



1.6.14
Bank A/c ...Dr.

30720


Rebate A/c ...Dr.

30


To Bills Receivable A/c


30750

[Being the new bill is retired]





In the Books of Mukesh
Anil's A/c       
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
1.2.14
To Bills Payable A/c

40000
1.2.14
By Balance b/d

40000
4.3.14
To Cash A/c

10000
4.3.14
By Bills payable A/c

40000
4.3.14
To Bills Payable A/c

30750
4.3.14
By Interest A/c

750



80750



80750