A owed B Rs. 400. A accepted a Bill of Exchange at 3 months date for this amount which B discounted for Rs. 380.
Give the necessary Journal entries in the books of A and B if this bill is:
(a) dishonoured on the due date;
(b) met at maturity and
(c) retired under rebate at 6% p.a. 2 months before its maturity.
