Question

On 5th January 2012, Nanakji hasto pay Kanakji Rs.4000
for which he accepts the bill in 3 months.On 8th January 2012
kanakji discounted the bill with his banker at 12percent p.a. The
bill was dishonoured on presentation, the noting charges
being Rs 10. On the next day Nanakji paid Rs 1010 to kanakji
on account and give him a new bill payable at four month
for the balance of the amount,plus 12.percent p.a interest.
Give entries which should prepared to the books of both the
parties to the bill and also prepare Nanakji account in the
Ledger of Kanakji​

Answer 1

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