On 15th January 2018, X sold goods to Y for ₹ 50,000 charging IGST 12%. Y immediately paid ₹ 6,000 in cash and accepted two bills of equal amount, the first for one month and the second for two months. The first bill was met on due date but on the due date of the second bill, Y requested that the bill be renewed for a further period of two months. X agreed provided that interest at 15% p.a. was paid immediately in cash. Y agreed to this. The second bill was met on the due date.Give journal entries in the books of X and Y.

On 15th January 2018, X sold goods to Y for ₹ 50,000 charging IGST

1.	On 15th January 2018, X sold goods to Y for ₹ 50,000 charging IGST 12%. Y immediately paid ₹ 6,000 in cash and accepted two bills of equal amount, the first for one month and the second for two months. The first bill was met on due date but on the due date of the second bill, Y requested that the bill be renewed for a further period of two months. X agreed provided that interest at 15% p.a. was paid immediately in cash. Y agreed to this. The second bill was met on the due date.Give journal entries in the books of X and Y.
Answer» On 15th January 2018, X sold goods to Y for ₹ 50,000 charging IGST 12%. Y immediately paid ₹ 6,000 in cash and accepted two bills of equal amount, the first for one month and the second for two months. The first bill was met on due date but on the due date of the second bill, Y requested that the bill be renewed for a further period of two months. X agreed provided that interest at 15% p.a. was paid immediately in cash. Y agreed to this. The second bill was met on the due date. Give journal entries in the books of X and Y.

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