Bills Of Exchange

(a) Journal Entries in the Books of Mansi \begin{tabbing} \hspace{6cm} \= \hspace{4cm} \= \kill Journal Entries \> Dr. \> Cr.
\hline \text{Bank Account} \> ₹ 5,000 & \text{To Kanika Account} \> ₹ 5,000
\text{(Being payment made by cheque for balance amount of bill)}
\hline \text{Kanika Account} \> ₹ 21,000 & \text{To Bills Receivable Account} \> ₹ 21,000
\text{(Being bill drawn on Kanika for 3 months)}
\hline \text{Bills Receivable Account} \> ₹ 21,000 & \text{To Bansari Account} \> ₹ 21,000
\text{(Being endorsement of bill to Bansari)}
\hline \text{Bills Receivable Account} \> ₹ 21,000 & \text{To Kanika Account} \> ₹ 21,280
\text{(Being dishonour of bill by Kanika and noting charges paid)}
\hline \text{Kanika Account} \> ₹ 21,280 & \text{To Bills Payable Account} \> ₹ 21,280
\text{(Being new bill drawn on Kanika for 1 month with noting charges)}
\hline \text{Bank Account} \> ₹ 21,930 & \text{To Kanika Account} \> ₹ 21,930
\text{(Being payment received from Kanika on the new bill)}
\hline \end{tabbing} (b) Mansi Account in the Books of Kanika \begin{tabbing} \hspace{6cm} \= \hspace{4cm} \= \kill Mansi Account \> Dr. \> Cr.
\hline \text{Bills Payable Account} \> ₹ 21,000 & \text{To Mansi Account} \> ₹ 21,000
\text{(Being acceptance of bill by Kanika)}
\hline \text{Mansi Account} \> ₹ 5,000 & \text{To Bank Account} \> ₹ 5,000
\text{(Being payment made by cheque for part of the bill)}
\hline \text{Mansi Account} \> ₹ 21,280 & \text{To Bills Payable Account} \> ₹ 21,280
\text{(Being dishonour of bill and noting charges)}
\hline \text{Mansi Account} \> ₹ 21,930 & \text{To Bank Account} \> ₹ 21,930
\text{(Being payment made to Mansi on new bill)}
\hline \end{tabbing} Final Answer: The journal entries and accounts reflect the proper recording of the transactions between Mansi and Kanika, including the dishonoured bill, the new bill drawn, and the payment received.