Q3. Mr. Ahmed sold to Mr. Ayman OMR 60,000 worth of goods on the 1st of March 2012 by accepting eight month,8% interest bearing note. Both Mr. Ahmed & Mr. Ayman need to your help in understanding how and in what way the notes receivable and the payables should be treated. Provide them with the required help by showing how the transactions would be treated in the following situations.

(a) When the notes are accepted.

(b) On the maturity date, the note is honored.

(c) Suppose Mr. Ahmed prepared final accounts on the 30th of July 2012.

(d) Following the above situation the bill is met on maturity.

(e) The note was dishonored on the maturity date by Mr. Ayman.