On 1st May, 2023, Merchant & Co. sold goods to AB & Co. of ₹ 50,000 and drew upon them a bill at 3 months for the amount. AB & Co. accepted the draft on presentation. When the bill was to mature, AB & Co. expressed their inability to meet it and offered to pay Merchant & Co. agreed to the proposal and bill was renewed. On maturity, the bill was duly met.

Pass entries in the books of both the parties to record the above transactions.

Anurag Pathak Changed status to publish October 25, 2023