Harshad draws a bill on Manohar for rs.8000 at 3 months
Manohar accepts and returns to Harshad. Harshad then
sends the bill on his bank for collection.
on due date Manohar finds himself unable to make
payment of the bill and requests Harshad to renew it.
He accepts the proposal on the condition that Marshan
rs.2000 along with interest @ 15% pa. in cash
and should accept new bill for the balance at 2 months
These arrangements were carried through . One month
before Manohar retired his acceptance @ 12% pa
Give journal entries and Manohar's account in
the books of Harshad
Answers
Answer:
Harshad draws a bill on Manohar for rs.8000 at 3 months
Manohar accepts and returns to Harshad. Harshad then
sends the bill on his bank for collection.
on due date Manohar finds himself unable to make
payment of the bill and requests Harshad to renew it.
He accepts the proposal on the condition that Marshan
rs.2000 along with interest @ 15% pa. in cash
and should accept new bill for the balance at 2 months
These arrangements were carried through . One month
before Manohar retired his acceptance @ 12% pa
Give journal entries and Manohar's account in
the books of Harshad
Explanation:
Harshad draws a bill on Manohar for rs.8000 at 3 months
Manohar accepts and returns to Harshad. Harshad then
sends the bill on his bank for collection.
on due date Manohar finds himself unable to make
payment of the bill and requests Harshad to renew it.
He accepts the proposal on the condition that Marshan
rs.2000 along with interest @ 15% pa. in cash
and should accept new bill for the balance at 2 months
These arrangements were carried through . One month
before Manohar retired his acceptance @ 12% pa
Give journal entries and Manohar's account in
the books of Harshad