A’s acceptance to B for Rs. 5,000 is discharged by a cash payment of Rs.3000 and a new bill is drawn for the balance plus Rs.100 for interest. The amount of the new bill will be Rs.
Total amount of the old bill = Rs. 5,000 Amount paid in cash = Rs. 3,000 Amount due = Rs. 2,000 Interest on renewable = Rs. 100 So the amount of the new bill = 2000 + 100 = Rs. 2100
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