Question

A sells goods to B for Rs. 10,000 plus CGST and SGST@ 9% each. B pays Rs. 1800 in cash and accepts a bill on him for the balance amount for 3 months. Before the due date, B requests A to cancel the bill, to accept Rs. 3,000 as part payment and to draw a fresh bill on him for Rs. 7,200 for a further period of 2 months—Rs. 200 being the interest for the extended period. A agrees to the proposal. The new bill is duly honoured.
Pass necessary Journal entries in the books of A.


Anyone can answer this question.... it's urgent​

Answer 1

Answer:

A sells goods to B for Rs. 10,000 plus CGST and SGST@ 9% each. B pays Rs. 1800 in cash and accepts a bill on him for the balance amount for 3 months. Before the due date, B requests A to cancel the bill, to accept Rs. 3,000 as part payment and to draw a fresh bill on him for Rs. 7,200 for a further period of 2 months—Rs. 200 being the interest for the extended period. A agrees to the proposal. The new bill is duly honoured.

Pass necessary Journal entries in the books of A.

Anyone can answer this question.... it's urgent