Tag: book keeping and accountancy

X draws a bill of exchange of Y for $Rs. 20,000$ payable in $4$ months. On the due date Y could not make the payment and requested X to renew a fresh bill for another three months at $12$% interest p.a. The amount of fresh bill will be ____________.

When a bill is discharged, the receiver debits ___________.

S draws 2 bills of exchange on 1.1.06 for Rs. 3,000 and Rs. 10,000 respectively . The bill of exchange for Rs. 3,000 is for 2 months, while the bill of exchange for Rs. 10,000 is for 3 months. These bills are accepted by K. On 4.3.06 K requests S to renew the first bill with interest at 18% p.a for a period of 2 months. S agrees to this proposal. On 20.3.06 K retires the acceptance for Rs. 10,000 the interest rebate, i.e., discount being Rs. 50.
Before the due date of the renewed bill K becomes insolvent and only 60 paise in a rupee can be recovered from his estate. How much bed debt will be recorded in the books of S?

No cancellation entry is required when a bill is renewed.

On 1.1.05 X draws a bill on Y for Rs. 30,000 for 3 months. At maturity Y requests X accepts Rs 10,000 in cash and for balance to draw a fresh bill for 2 months together with 12% p.a interest, Amount of interest will be ___________.

Discount at the time of retirement of a Bill is a gain for the drawee.

Maternity Benefits (Amendment) Bill, 2016 provides _______ weeks of full paid maternity leave to women who work in organised sector.

At the time of Renewal of a bill, Interest account is debited in the books of a Drawee.

A cancellation entry is required, when a bill is renewed.

Del credere commission is normally calculated on total sales.