On January 1, 2015 Saju accepted a bill, drawn on him by Rinku for ~ 5,000 payable 4 months after sight, against his dues. Having surplus funds, Saju paid off the bill on 4th February and was allowed a rebate of 6% p.a. Show Journal entries in the books of Saju and Rinku to record these transactions.
On 1st July, 2015, A sold goods to B priced at ~ 6,000 subject to a deduction of 162/3% trade discount and drew a bill on B for 3 months. B accepted the bill and returned it to A. A and B mutually agreed that this bill should be discharged by a cash payment of ~ 2,000 and a new bill on such a date as would enable the latter to earn a rebate of ~ 100 @ 10% p.a. The new bill would be accepted for 2 months at 12% p.a. interest. The new bill was met on the due date.
Pass Journal Entries in the books of B.