Ms.Fathima sold exclusive design ware materials to Ms.Aysha OMR 120,000 worth of goods on the 10th of February 2020 by accepting 150 days,8% interest bearing note. For one of them it was a Notes receivable while for the other it was a Notes payable. The accountants of both Ms. Fathima and Ms. Aysha made entries in the account books. Assume that you are the accountant and show by presenting a detailed table the entries you would make. Also show your calculations clearly for interests received and paid.

Show how the transactions would be treated in the following situations.

(i) When the notes are made and accepted by both parties

(ii) Honoring of the notes by the payee on the maturity date

(iii) Suppose Ms. Fathima asked her accountant to prepare the final accounts on the 4 th of April 2020 while Ms. Aysha wants it to be prepared on 2nd of May 2020

(iv) Following the above situation the bill is met on maturity by both parties

(v) The note was dishonored on the maturity date by the payee