+3 votes
in General by kratos

For the amount receivable Ms. Jaya draws a bill on Ms. Maya, on 1st January, 2010 for Rs 54,000, for a ** of 4 months.

Maya accepts the bill and returns it to Jaya, who gets the bill discounted with bank @ 8% p.a. Before due date, Maya approaches Jaya and requests to accept Rs 36,000 in cash and draw a second bill for the balance.
Jaya draws a new bill for the balance plus interest @ 12% p. a. for two months on 4th May, 2010 as per the request and received the accepted bill from Maya.

Jaya sends the bill to the bank for collection. Maya honours her acceptance on the due date.
Pass Journal entries in the books of Ms. Jaya and show Ms. Jaya'* account in the books of Ms. Maya.