Amar purchased goods of ₹ 10,000 from Bimal on 1st January, 2023. Amar accepts a bill for 1 month drawn by Bimal for the same. Being unable to meet the bill on due date, Amar requested Bimal to accept cash ₹ 2,500 and draw a new bill for 2 months for the balance amount plus interest of ₹ 500. Bimal accepted this proposal and drew on Amar another bill. The bill was duly met on due date.

Pass Journal entries in the books of both the parties.

Anurag Pathak Changed status to publish October 25, 2023