On 1 June 19X8, X purchased goods from Y for £860 and sold goods to Z for £570.
On the same date, X drew a bill (No. 1) at three months on Z for £400 and Z accepted it.
On 12 June 19X2, Z drew a bill (No. 2) at three months on Q for £150 which Q accepted.
On 14 June, Z endorsed bill No. 2 over to X and, on 16 June, X endorsed this bill over to Y.
On 20 June, X accepted a bill (No. 3) at three months for £720 drawn by Y in full settlement of his account, including interest. On 23 June, Y discounted bill No. 3 at his bank.
On 17 September, Y informed X that Q’s acceptance had been dishonoured and X sent a cheque for £150 to Y. The other bills were paid on the due dates.
On 20 September, X received a cheque from Z for half the amount due from him.
Required:
Show the entries to record these transactions in the ledger and cash book of X.