Tag: book keeping and accountancy

M sold goods worth of Rs 1,50,000 to N. On 1st Oct, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p a. in cash. How much interest to be paid in cash by N?

X drew a bill on Y for 3,000. X endorsed it to Z who endorsed it to W. The payee of the bill will be:

On 1st Jan X draws a bill of exchange for 1,50,000 due for payment after 3 months on Y who accepts this bill of exchange. On 4th March Y retires the bill of exchange at a discount of 12% p.a. Which of the discount is correct for premature payment in the books of Y.

X draws an accommodation bill on Y. The proceeds are to be borne by Y and X in the ratio of 3:1. The amount of bill was Rs 60,000, discounting charges are Rs 1,200. Discount borne by Y will be:

X drew a bill on Y for 45,000 for mutual accommodation in the ratio 2:1. Y accepted the bill and returned to X. X discounted the bill for 42,300 and remitted 1/3rd proceeds to Y. Before the due date, not having funds to meet the bill, Y drew a bill on X for 63,000 on the same terms as to mutual accommodation. The second bill was discounted for 61,200. The first bill was honored in the due date and a net amount of 10,800 was remitted to X by Y. The proportionate discount charge on both the bills is to be borne by X is:

On 1st Jan, X drew a bill on Y for 3 month for Rs 1,50,000. On 4th March, Y pays the bill to X at 12% p.a. discount, the amount of discount will be?

If a bill is dishonored, when presented for payment by third party, the drawer will debit ___________.

On 1st Jan, 2017 X sold goods to Y for Rs 10,000 on credit basis. On the same date X drew a bill for Rs 10,000 on Y at two months. Y accepted the bill and returned it to X. On the due date Y could not honor acceptance. What is the journal for recording the dishonor of a bill?

______ bears the expenses of noting charges on dishonourment of a bill of exchange.

A draws a bill on B for Rs. 60,000. A endorsed it to C in full settlement of Rs. 60,500. On due date, the bill was dishonored. Noting charge of Rs. 500 was paid. A wanted to pay the amount to C at 2% discount. The amount to be paid by A to C will be ___________.