A sells goods to B for ₹ 10,000 plus CGST and SGST @ 9% eacyh. B pay ₹ 1,800 in cash and accepts a bill for the balanc amount for 3 months. Before the due date, B requests A to cancel the bill and to accept ₹ 3,000 as part payment and to draw a fresh bull on him for ₹ 7,200 for a futher period of 2 months-- ₹ 200 being the interset for the extended period. A agress to the proposal . the new bill is duly honourd. the extended period. A agress to the proposal. hte new bull is duly honoured. Pass necessary Journal entries and other party's account in the books of both the parties.

Explanation