On 1st January, 2018, Dinesh purchased goods from Chander for ₹ 60,000 plus CGST and SGST 6% each. Dinesh pays ₹ 7,200 in cash and accepts a bill drawn by Chander for the balance amount payable after two months. On the due date Dinesh is able to manage ₹ 20,000 in cash and he arranges with Chander for the retirement of the bill in consideration of this payment and a fresh bill at four months for the balance plus interest at 18% per annum. The second bill is duly met on maturity.make the necessary Journal entries in the books of Chander and Dinesh.

On 1st January, 2018, Dinesh purchased goods from Chander for ₹ 60,0

1.	On 1st January, 2018, Dinesh purchased goods from Chander for ₹ 60,000 plus CGST and SGST 6% each. Dinesh pays ₹ 7,200 in cash and accepts a bill drawn by Chander for the balance amount payable after two months. On the due date Dinesh is able to manage ₹ 20,000 in cash and he arranges with Chander for the retirement of the bill in consideration of this payment and a fresh bill at four months for the balance plus interest at 18% per annum. The second bill is duly met on maturity.make the necessary Journal entries in the books of Chander and Dinesh.
Answer» On 1st January, 2018, Dinesh purchased goods from Chander for ₹ 60,000 plus CGST and SGST 6% each. Dinesh pays ₹ 7,200 in cash and accepts a bill drawn by Chander for the balance amount payable after two months. On the due date Dinesh is able to manage ₹ 20,000 in cash and he arranges with Chander for the retirement of the bill in consideration of this payment and a fresh bill at four months for the balance plus interest at 18% per annum. The second bill is duly met on maturity. make the necessary Journal entries in the books of Chander and Dinesh.