Question

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 1

Books of Chander Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Jan. 01	Dinesh	Dr.		67,200
	To Sales A/c				60,000
	To Output CGST A/c				3,600
	To Output SGST A/c				3,600
	(Goods sold to Dinesh plus 6% Intra-state GST)
Jan. 01	Bills Receivable A/c	Dr.		60,000
	Cash A/c	Dr.		7,200
	To Dinesh				67,200
	(Dinesh paid cash in part and accepted a bill for the remaining amount)
Mar. 04	Dinesh	Dr.		60,000
	To Bills Receivable A/c				60,000
	(Bill cancelled on due date)
Mar. 04	Cash A/c	Dr.		20,000
	To Dinesh				20,000
	(Cash received from Dinesh)
Mar. 04	Dinesh	Dr.		2,400
	To Interest A/c				2,400
	(Interest due to be received)
Mar. 04	Bills Receivable A/c	Dr.		42,400
	To Dinesh				42,400
	(Dinesh accepted the new bill)
July 07	Cash A/c	Dr.		42,400
	To Bills Receivable A/c				42,400
	(Bill honoured on due date)

Books of Dinesh Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2018
Jan. 01	Purchases A/c	Dr.		60,000
	Input CGST A/c	Dr.		3,600
	Input SGST A/c	Dr.		3,600
	To Chander				67,200
	(Goods purchased from Chander plus 6% intra-state GST)
Jan. 01	Chander	Dr.		67,200
	To Bills Payable A/c				60,000
	To Cash A/c				7,200
	(Part payment made in cash and for the remainning Bill drawn by Chander, accepted)
Mar. 04	Bills Payable A/c	Dr.		60,000
	To Chander				60,000
	(Bill dishonoured on due date)
Mar. 04	Chander	Dr.		20,000
	To Cash A/c				20,000
	(Cash paid to Chander)
Mar. 04	Interest A/c	Dr.		2,400
	To Chander				2,400
	(Interest due to be paid)
Mar. 04	Chander	Dr.		42,400
	To Bills Payable A/c				42,400
	(New bill drawn by Chander, accepted)
July 07	Bills Payable A/c	Dr.		42,400
	To Cash A/c				42,400
	(Cash paid to Chander)

Working Note:

Calculation of amount of Interest