In the books of A, there was a balance of ~ 13,000 due by B on 31st March, 2015 which was written-off as bad debt in closing of the books on that date. On 12th July, 2015 B paid cash ~ 12,000 in full and final settlement of his dues.
Further transactions took place between A and B as follows :
2015
Aug 4 A sold goods to B valued at ~ 25,000 which were paid by cheque ~ 4,000 and a bill of exchange for ~ 21,000 at one month. A discounted the bill of exchange at the bank for ~ 20,900.
Sep. 7 B’s bill was dishonoured and A was called upon to take it up. This he did by paying noting charges of ~ 100.
Sep. 8 B met his obligation for ~ 21,000 with a bill at two months for the same amount, paid cash for noting charges on the old bill and interest of ~ 2012 on the new bill.
Nov. 11 B met his bill by paying cash ~ 11,000 and accepted a fresh bill at two months for ~ 10,400 including interest. Dec. 11 B having become insolvent paid final dividend of 50 paise in the rupee.
Show journal entries in the books of A and necessary ledger accounts in the books of B.