Need ASAP

Illustration: Ramesh Kumar having accepted a bill for Rs.1,000 is unable to meet the same. Before the due date, he requests Raj Kumar to receive Rs. 20 for interest and draw on him a new Bill for the amount for a further period of three months and cancel the old bill which is shortly to become due. Raj Kumar agrees to his proposal. Pass entries in the books of both the parties to the transactions. 240