A two months Bill for Rs 60,000 is drawn by B & Company and accepted by C & Co., payable at the Bank of India. B & Co. give the bill to their banker for collection. On due date, bill is honoured. Show the entries will be passed in the books of B & Co.

On 1^st January, 2014, A sold goods to B for Rs 5,000 and on the same day drew upon him a bill at three months for the amount. B accepted the bill and returned it to A. On 4^th January, 2014, A discounted the bill with his bank at Rs 4,900. On the due date, the bill was dishonoured and bank paid Rs 100 as noting charges. Record these transactions in the Journals of A and B.

On 1^st January, 2014, A sold goods to B for Rs 10,000 and drew upon him a bill at three months for the amount B accepted the bill and returned it to A. On 4th March, 2014, B retired the Bill under rebate of 6% per annum. Record these transactions in the Journal of A and B.

On January 15, 2015, Niru sold goods of Rs 30,000to Shibu and drew upon later a bill which was accepted by Shibu. Bill was discounted by Niru for his bank, for Rs 29,250 on Jan 31, 2015. On maturnity the bill was dishonowed. He fwther agreed to pay Rs 10,500 in cash including 500 interest and accept a new bill for two months for the remaining Rs 20,000 The new bill was endorsed by Niru in favour of her creditor Kamal for setting a debit of Rs 20,000. The new bill was duty met by Shibu on maturity. Record the necessary journal entries in the books of Niru.

On 1^st January, 2014, A and B drew on each other a bill for Rs 20,000, payable three months after date for their mutual benefit. On 4^th January, they discounted with their bank each other's bill at 18%per annum. On the due date, each met their own acceptance. Record transactions in the Journal of A and B.

Briefly explain the effects of dishonour and noting of a bill of exchange.

Distinguish between the bill of Exchange and a promissory note.

Briefly explain the purpose & benefits of retiring a bill of exchange to the debtor & creditor?

Explain briefly the purpose and advantages of maintaining of a Bills Receivable Books.

Briefly explain the benefits of maintaining a bills payable book & state how is its post in done in the ledger?