write:Pass necessary journal entries in the books of Mohan and Sohan in following situations: (a) The bill is retained by Mohan till 31st March and Sohan paid it on that day upon presen

Mohan drew a bill for three months on Sohan who accepted the same. Pass necessary journal entries in the books of Mohan and Sohan in following situations: (a) The bill is retained by Mohan till 31st March and Sohan paid it on that day upon presentation. (b) Bill is discounted with the bank and the bank pays ` 49
000 to Mohan. Sohan paid the bill on due date.(c) Mohan endorsed the bill to Rohan (his creditor) in settlement of his claim for ` 51
000. The bill is settled on the due date. (d) Mohan sent the bill to the bank for collection on due date. The bank collected bill amount and after deducting collection charges of `100 paid the balance to Mohan.Solution: Entries in the books of Mohan(a) Bill is retained by Mohan:ParticularsL.F.Dr. (`)Cr. (`)On getting Sohan’s acceptanceB/R A/c Dr. To
Sohan’s A/c(Being the bill accepted by Sohan)50
50
000On payment on 31-03-15Bank A/c / cash A/c Dr. To
B/R A/c(Being the payment received against the B/R)50
50
000(b) Bill is discounted by Mohan:ParticularsL.F.Dr. (`)Cr. (`)On getting Sohan’s acceptanceB/R A/c Dr. To
Sohan’s A/c(Being the bill accepted by Sohan)50
50
000On discounting 31-03-15Bank A/c Dr.Discount A/c To B/R A/c(Being bill discounted with bank)49
1
50
000On the date of maturity
as the bill is settled by Sohan to bank
there will be no entry in Mohan’s books.(c) Bill is endorsed to Rohan by Mohan:ParticularsL.F.Dr. (`)Cr. (`)On getting Sohan’s acceptanceB/R A/c Dr. To
Sohan’s A/c(Being the bill accepted by Sohan)50
50
000On endorsement 31-03-15Rohan A/c Dr.To
B/R A/cTo discount (Being bill endorsed and discount received from Rohan in full settlement))51
50
1
0