CA CPT Model Test Paper 2 with solutions for online practice

Kishan, the acceptor of the bill has to honour a bill on 31st March, 2010. Due to financialcrisis, he is unable to pay the amount of bill of Rs. 40,000. Therefore he approaches Karan,the drawer of that bill on 20th March, 2010 for extension of the bill for further 2 months.Karan agrees to extend the credit period by drawing a new bill for Rs. 42,000 together withinterest of Rs. 2,000 in cash. In this case old bill of Rs. 40,000 will be considered as