=+Both immediately discount the bills with their bankers. The discount charged to Barlow is £16 and to Ring £18.

Barlow pays his bill on the due date but Ring is unable to do so. He arranges for a friend. Wells, to pay the amount to the banker. He accepts a three months draft payable to Wells for £720, and Welis immediately discounts this bill. On the due date. Ring honours the bill.

Give the accounts in the books of Barlow and those of Ring.