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What is meant by the renewal of the bill?

As our team renewal of the bill homework help promised to resolve doubts by making things easy so accordingly in the most accessible language, renewal of the bill is nothing but extending the deadline for bill payment. Several times situations arise when drawee of bill could not pay amount. Thus requests drawer to extend date of payment.

Now it depends on the drawer whether he would agree or not. If he agrees with it, then the old bill is thus cancelled, and a new one is drawnupto the extended period. If a billis renewed, then the drawee has to pay interest to drawer for next prolongedperiod.

Journal entries for renewal of bill:

Creditor’s books-

  • When old bill is cancelled
  • When drawer charges for interest
  • When recognition of new bill is unrestricted

Debtor’s books-

  • Cancellation of old bills
  • Interest charged by lawyer
  • Acceptance of fresh bill

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