Mr. David draws two bills of exchange on 1.1.95 for $. 6,000 and $. 10,000. The bills of exchange for $. 6,000 is for tw

[answerhappygod]

Mr David Draws Two Bills Of Exchange On 1 1 95 For 6 000 And 10 000 The Bills Of Exchange For 6 000 Is For Tw 1 (36.41 KiB) Viewed 28 times

Mr. David draws two bills of exchange on 1.1.95 for $. 6,000 and $. 10,000. The bills of exchange for $. 6,000 is for two months while the bill exchange for $. 10,000 is for three months. The bills are accepted by Mr. Thomas. On 4.3.95 Mr. Thomas requests Mr. David to renew the first bill with interest at 18% p.a. for a period of two months. Mr. David agrees to this proposal. On 20.3.95 Mr. Thomas retires the acceptance for $. 10,000, the interest rebate, i.e., the discount being $. 100. Before the due date of the renewed bill, Mr. Thomas becomes insolvent and only 50 dollar in a dollar could be recovered from his estate. You are to give the journal entries in the books of Mr. David.