On 1st January, 2014 Archana drew a bill for Rs. 6,000 for 2 months periods on Ramya. Ramya duly accepted the bill. On 4th January 2014 Archana discounted the bill with her bank for Rs. 5850. However, on the due date the bill was dishonoured. Ramya agreed to accept a new bill with an interest of Rs. 150 for a period of one month. The bill was duly met on the due date. Give the journal entries in the books of Archana and show Archana’s account in the books of Ramya.



Journal Entries in the Books of Ramya.

Date
Particulars
LF
Debit (Rs)
Credit (Rs)
1.1.14
Bills Receivable A/c ...Dr.

6000


To Ramya's A/c


6000

[Being the bill is drawn]



4.1.14
Bank A/c ...Dr.

5850


Discount A/c ...Dr.

150


To Bills Receivable A/c


6000

[Being the bill is discounted]



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

6000


To Bank A/c


6000

[Being the discounted bill is dishonoured]



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

150


To Interest A/c


150

[Being the Interest is charged]



4.3.14
Bills Receivable A/c ...Dr.

6150


To Ramya's A/c


6150

[Being the new bill is drawn along with interest]



7.4.14
Bank A/c ...Dr.

6150


To Bills Receivable A/c


6150

[Being the new bill is duly honoured]





In the Books of Ramya
Archana's A/c
Date
Particulars
JF
Amount
Date
Particulars
JF
Amount
1.1.14
To Bills Payable A/c

6000
1.1.14
By Balance b/d

6000
4.3.14
To Bills Payable A/c

6150
4.3.14
By Bills Payable A/c

6000




4.3.14
By Interest A/c

150



12150



12150