Question

Rose purchased goods from Lilly on
credit for Rs. 2,000. On next day Rose
paid Rs. 1,000 to Lilly and accepted a bill
drawn by Lilly for the balance amount for
four months. Lilly discounted the bill with
her bank for Rs. 960/-. Before the due
date Rose approached Lilly with a
request to renew the Bill. Lilly agreed
with the condition that Rose should pay
Rs. 600 along with interest of Rs. 12 and
accept a new bill for the balance. These
arrangements were duly carried out.
New bill is met on the due date. Pass
journal entries books of Lilly. [Ans]​

Answer 1

Answer:

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