Question: Shan Trading Company conducted the following transactions during May, 2020:- a) Sold merchandise to Rehmat Brothers at Rs. 50,000 on 05 May 2020 terms

Shan Trading Company conducted the following transactions during May, 2020:- a) Sold

Shan Trading Company conducted the following transactions during May, 2020:- a) Sold merchandise to Rehmat Brothers at Rs. 50,000 on 05 May 2020 terms 30 days credit. b) On 06 June 2020 Rehmat Brothers could not pay his dues and signed a two months Promissory Note with 12% per annum interest. On 30 June the accrued interest was accounted for. c) d) On 06 August 2020 the payment of promissory note with interest was collected. Required 1) 2) 3) Record the above transactions in the books of accounts of Shan Trading Company. Indicate the interest income on the promissory note at year end of 30 June 2020. Compute the total interest income on the promissory note at maturity

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