Entries in the books of A:
1. On 1st January, 2018, when A draws a bill upon B for ₹ 5,000:
- Debit B's Account ₹ 5,000
- Credit Bills Receivable Account ₹ 5,000

2. On the date of acceptance, when B accepts the bill:
- Debit Bills Receivable Account ₹ 5,000
- Credit B's Account ₹ 5,000

3. On the maturity date, when B is unable to pay the bill:
- Debit B's Account ₹ 5,000
- Credit Bills Receivable Account ₹ 5,000

4. On receiving another bill from B, payable one month after date with interest and incidental charges:
- Debit B's Account ₹ 5,000
- Credit Bills Receivable Account ₹ 5,000

5. On the date of maturity of the second bill, when B pays the bill with interest and incidental charges:
- Debit B's Account ₹ 5,000
- Credit Bills Receivable Account ₹ 5,000
- Debit Interest Account ₹ (Amount of interest)
- Debit Incidental Charges Account ₹ (Amount of incidental charges)
- Credit B's Account ₹ (Total amount paid by B)

Entries in the books of B:
1. On the date of acceptance, when B accepts the bill:
- Debit A's Account ₹ 5,000
- Credit Bills Payable Account ₹ 5,000

2. On the maturity date, when B is unable to pay the bill:
- Debit A's Account ₹ 5,000
- Credit Bills Payable Account ₹ 5,000

3. On issuing another bill payable one month after date with interest and incidental charges:
- Debit A's Account ₹ 5,000
- Credit Bills Payable Account ₹ 5,000

4. On the date of maturity of the second bill, when B pays the bill with interest and incidental charges:
- Debit A's Account ₹ 5,000
- Credit Bills Payable Account ₹ 5,000
- Debit Interest Account ₹ (Amount of interest)
- Debit Incidental Charges Account ₹ (Amount of incidental charges)
- Credit A's Account ₹ (Total amount paid by B)

Promissory Note:
- A promissory note is a written promise made by one party (the maker) to another party (the payee) to pay a specific sum of money on demand or at a specified future date.
- It is a negotiable instrument used for borrowing or lending money and serves as evidence of debt.
- The promissory note contains details such as the names of the parties involved, the amount of money promised, the date of payment, the rate of interest (if any), and the place of payment.
- It is signed by the maker and is legally enforceable.
- The payee can transfer the promissory note to another party by endorsement (signing on the back) and delivery.
- The parties to a promissory note are the maker (who promises to pay) and the payee (who will receive the payment).
- The promissory note can also have additional parties,