Question

Q. 3. Sunil accepted a bill for * 18,000 drawn by Jignesh at 3 months. Jignesh discounted thebill for * 17,400. Before the due date, Sunil approached Jignesh for renewal of the bill.Jignesh agreed on the condition that Sunil should pay 6,000 immediately and for thebalance he should accept a new bill for 4 months along with interest * 550. The arrangementswere carried through. But on the due date of new bill, Sunil became insolvent and only 35paise in a rupee could be recovered from his estate.Give journal Entries in the books of Sunil and prepare Jignesh's Account in the books ofSunil.​

Answer 1

Answer:

Q. 3. Sunil accepted a bill for * 18,000 drawn by Jignesh at 3 months. Jignesh discounted thebill for * 17,400. Before the due date, Sunil approached Jignesh for renewal of the bill.Jignesh agreed on the condition that Sunil should pay 6,000 immediately and for thebalance he should accept a new bill for 4 months along with interest * 550. The arrangementswere carried through. But on the due date of new bill, Sunil became insolvent and only 35paise in a rupee could be recovered from his estate.Give journal Entries in the books of Sunil and prepare Jignesh's Account in the books ofSunil.