Question

On 1st March 2016 Meenakshi sold goods to Nita worth ₹40,000. Nita accepted a
bill for 3 months drawn by Meenakshi on 1st March 2016. On 31st may 2016,
Nita requested Meenakshi to renew the bill. Meenakshi agreed on condition that
Nita should pay₹ 10,000 in cash and accept a new bill for the balance amount plus
interest at the rate 12% per annum for 2 months. Nita accepted the new bill drawn
for 2 months plus interest. On the due date the bill was honoured.

Answer 1

Explanation:

On 1st March 2016 Meenakshi sold goods to Nita worth ₹40,000. Nita accepted a

bill for 3 months drawn by Meenakshi on 1st March 2016. On 31st may 2016,

Nita requested Meenakshi to renew the bill. Meenakshi agreed on condition that

Nita should pay₹ 10,000 in cash and accept a new bill for the balance amount plus

interest at the rate 12% per annum for 2 months. Nita accepted the new bill drawn

for 2 months plus interest. On the due date the bill was honoured.