Rita owed ₹1,00,000 to Siriman. On 1st October, 2023, Rita accepted a bill drawn by Siriman
for the amount at 3 months. Siriman got the bill discounted with his bank for ₹99,000 on 3rd
October, 2023. Before the due date, Rita approached Siriman for renewal of the bill. Siriman
agreed on the conditions that ₹50,000 be paid immediately together with interest on the
remaining amount at 12% per annum for 3 months and for the balance, Rita should accept a
new bill at three months. These arrangements were carried out. But afterwards, Rita became
insolvent and 40% of the amount could be recovered from his estate.
Pass journal entries (with narration) in the books of Siriman.
Isme interest ki entry due hogi ya paid
May 2, 2025
