A approached his friend B for a loan of ~ 5,000 and the latter, being unable to find the money, agreed to accept a bill drawn on him at 3 months for accommodation. In due course, the bill was drawn, accepted and discounted with the banker. The bank rate of discounting the customer’s bill was 6% p.a. On the due date, A remits the required amount to B and the bill was duly met. Pass the Journal entries in the books of both the parties.
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