On 12th May, 2020 A sold goods to B for 36,470 and drew upon the later...

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On 12th May, 2020 A sold goods to B for 36,470 and drew upon the later two bills one for 16,470 at one month and the other for 20,000 at three months. B accepted both the bills. On 5th June, 2020 A sent both the bills to his banker for collection on the due dates. The first bill was duly met. But due to some temporary financial difficulties, B failed to honour the second bill on the due date and the bank had to pay 20 as noting charges. However, on 16th August, 2020 it was agreed between A and B that B would immediately pay8,020 in cash and accept a new bill at 3 months for 12,480 which included interest for postponement of the part payment of the dishonoured bill. A immediately sent new acceptance to its bank for collection on the due date. On 1st October,2020 B approached A offering 12,240 for retirement of his acceptance A accepted the request. You are required to pass journal entries of all the above transactions in the books of A. On 12th May, 2020 A sold goods to B for 36,470 and drew upon the later two bills one for 16,470 at one month and the other for 20,000 at three months. B accepted both the bills. On 5th June, 2020 A sent both the bills to his banker for collection on the due dates. The first bill was duly met. But due to some temporary financial difficulties, B failed to honour the second bill on the due date and the bank had to pay 20 as noting charges. However, on 16th August, 2020 it was agreed between A and B that B would immediately pay8,020 in cash and accept a new bill at 3 months for 12,480 which included interest for postponement of the part payment of the dishonoured bill. A immediately sent new acceptance to its bank for collection on the due date. On 1st October,2020 B approached A offering 12,240 for retirement of his acceptance A accepted the request. You are required to pass journal entries of all the above transactions in the books of A.

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