On 1st April Mr. Boss draws a bill of $ 10000 on Mr. Lolo for the amount due for 4 months. On getting acceptance, on 5th April, Boss endorses it to Mr. Kat in full settlement of his claim of $*14000 by paying the difference in cash. Lolo approached Boss on 25th July saying that he needed to renew the bill for a further period of 4 months at an interest of 12% p.a. which Boss accepted. A fresh bill including interest was accepted by Lolo on 1st August. Boss settled his liability to Kat by cheque. This was duly settled on the due date. Pass journal entries in the books of Boss and Lolo.