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On 1st May,2019 Merchant & Co sold goods...

On 1st May,2019 Merchant & Co sold goods to AB & Co. Valued at ₹ 500 and drew upon them a bill at 3 months for the amount. AB & Co. expressed their inability to meet it, and offered to pay Merchant & co, ₹ 200 in cash and to accept a fresh bill for the balance plus interset at 6% p.a. for 3 months . Merchant & Co. agreed to the proposal and bill was renewed. on maturity the bill was duly met.
Make the entries in the books of both the parties to record the above transactions.

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