G and K enter into an accommodation arrangement whereunder the proceeds are to be shared as 2/3 and 1/3 respectively. G draws a bill for ~ 45,000 on 3rd April, 2015 at 3 months. G gets it discounted for ~ 44,600 and on 5th April, remits K’s share to him. On due date, K pays the bill, though G fails to remit his share. On 18th July, G accepts a bill for ~ 63,000
drawn on him by K at 3 months, which K discounts on 19th July for ~ 61,650 and remits ~ 11,100 to G. Before the maturity of the second bill, G becomes insolvent and only 40% was realised from his estate on 20th October, 2015.
Pass necessary Journal Entries in the books of G and K.