Question

Saranya owes ₹ 4,000 to Lavanya on 1st May 2002, she sent her promissory note for the amount payable after 3 months. On 1st June
2002 Lavanya endorses the promissory note in favour of Suganya to whom she owed alike amount on the due date. Saranya paid the amount. Give the entries on the books of Lavanya, Saranya and Suganya. Ignore interest.​

Answer 1

Explanation:

Gracy took a loan of amount = Rs.4000

She paid back amount per month = Rs.345

We are given that she paid back rs 345 every month for one year.

1 year = 12 months

She paid back amount in 12 month =345 \times 12345×12

= Rs.4140

Hence she paid back Rs.4140 to the bank