Subject: Business Laws Indian contract act, 1872 Unit 7 (contract of guarantee) Doubt: If the surety is unaware of the security that was there with the bank at the time of suretyship and returned, and the surety pays entire sum for which PD is liable..And he comes to know about the security later..Is the bank payable for entire sum(discharge of surety) or only payable for the amount of security?

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Harry draws a bill on Sejal for ₹ 60,000 on 01.01.2023 for 3 months. Sejal accepts the bill and sends it back to Harry to get it discounted for ₹ 56,000. Harry remits 1/4th amount to Sejal. On the due date, Harry was unable to remit his share to Sejal, rather accepts a bill of ₹ 80,000 for a period of 3 months. This bill was discounted by Sejal for ₹ 74,600. Sejal after making the payment of first bill sent 3/4th of the smount remaining to Harry. On maturity of the bill, Harry became bankrupt and his estate paying 40 paise in the rupee. Give journal entries in the books of Sejal. Also prepare ledger account of Harry. All workings should form part of the answer. Please solve and post answer anyone

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