On 01 July 2012, Mr. X receives from Mr. A three Bills, after due acceptance, for Rs. 7,000, Rs, 6,000 and Rs. 5,000 for three months, two months and one month respectively. On 03 July 2012, first bill was endorsed to Mr. K. the second one was discounted at a bank on 15 July 2012 for Rs. 5,900. The third one was retained till maturity, and became dishonored on due date, and Noting Charges paid Rs. 120. Mr. A requests Mr. X to receive Rs. 2620 for third bill as partial payment including interest, and draw upon him another bill for the rest of amount for another one month. Other two Bills were duly honored, and for third one, payment was also received on due date in cash.

Required: You are required to pass Journal Entries in the Books of Mr. A for all three Bills?

Differentiate between Common Stock and Preferred Stock?