Rita for mutual accommodation of herself and Mita, drew upon the latter a bill of exchange at three months for ~ 5,000 on 1.6.2013. Mita accepted the bill and sent it to Rita. Rita discounted the bill on 4.6.2013 at 8% p.a. and remitted half of the proceeds to Mita.
Mita for similar purpose drew a bill on 15.6.2013 at two months on Rita for ~ 3,000 and Rita accepted it. On 18.6.2013 Mita discounted the bill at 8% p.a. and handed over half of the proceeds to Rita.
At maturity Rita met her acceptance but Mita became insolvent and a dividend of 25 paise in a rupee was received from her estate on 25.10.2013. Pass necessary journal entries in the books of Rita.