Question

ate draws a bill on Mapate for 28,000 at 3 months. Mapate accepted the same and sent to Apate.
ent the same bill to his bank for collection. On due date Mapate found himself unable to make
of the bill, and requested Apate to renew it. Apate agreed on condition that Mapate should pay
000 and interest 200 on the remaining balance in cash and accept a fresh bill for the balance for two
months. These agreements were carried through. On due date of new bill it was duly honoured.
141
Pass Journal entries and Mapate's account in the books of Apate (ignore narrations)

Answer 1

Explanation:

due date Mapate found himself unable to make

of the bill, and requested Apate to renew it. Apate agreed on condition that Mapate should pay

000 and interest 200 on the remaining balance in cash and accept a fresh bill for the balance for two

months. These agreements were carried through. On due date of new bill it was duly honoured.