On 1 – 8 – ’16 Dharmesh drew a one month bill of ₹ 75,000 on Avadh, which Avadh accepted and returned. On 28 -8 -’16, Dharmesh sent this bill for collection through bank. The bill was dishonoured on the maturity date. The bank debited the amount including noting charges ₹ 375 and bank commission ₹ 225 to Dharmesh’s account. On 25-9-’16, Avadh paid the entire amount payable to Dharmesh by a cheque. Pass necessary journal entries in the books of Dharmesh and Avadh.
