Question

I. Katrak’s acceptance to Basu for Rs. 2,500 discharged by a cash payment of Rs. 1,000 and a new bill for the balance plus Rs. 50 for interest.

Answer 1

Answer:

BILLS PAYABLE ACCOUNT. Dr. 2500

INTEREST ACCOUNT. Dr. 50

TO CASH A/C. 1000

TO BASU A/C. 1550