Question

On 1st June, 2018 Niranjan purchased goods worth Rs. 3,000 from Manoj. Niranjan accepted a three

months bill for Rs. 3,000. On the due date, it was dishonoured. Noting charges paid by Manoj Rs. 20.

On Sept. 4, 2018 Niranjan requested Manoj for renewal of the bill for another two months, for which

Manoj agrees, provided that interest is paid @ 18% p.a. in cash. Make journal entries to these

transactions in the books of Manoj and Niranjan.​

Answer 1

Dr. Cr.

Date Particulars J.F. Amount

(Rs) Date Particulars J.F. Amount

(Rs)

2017 2017

Mar.03 Cash A/c 4,000 Mar.31 Balance c/d 4,000

4,000 4,000

2017

Apr.01 Balance b/d 4,000