Which of the following is true ?
A. noting is not a legally acceptable evidence of dishonour
B. when a bill is honoured, notice must be given to the prior parties.
C. a renewed bill re-establishes the acknowledgment of the debt of the drawee
D. upon retirement, the drawer of the bill gets a fixed payment.
On 1.2.2015, J. Jadav received from K. Kadam three acceptances for ~ 6,000, ~ 8,000 and ~ 10,000 for two, three and four months respectively. The first bill for ~ 6,000 was endorsed to M. Mehta; the second bill for ~ 8,000 was held till the due date; and the third bill for ~ 10,000 was discounted for ~ 50 discount.
At maturity all the bills were dishonoured. Give the Journal Entries in the books of J. Jadav and the Ledger Accounts in the books of K. Kadam, in respect of these transactions.