Tag: advantages of bill of exchange

______ 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 ___________.

Use the following information .

1. X and Y enter into a joint venture sharing profits & losses in the ratio of 3:2.
2. X is entitled to get 1% commission on purchase and Y is entitled to get 5% commission on sales.
3. X purchased goods for 4,00,000 and sent the same to Y. Supplier allowed a cash discount of 5%.
4. X drew a bill on Y for an amount equivalent to 80% of the original cost of goods. X got it discounted at 3,00,000.
5. Y sold 50% goods for 5,00,000 and paid 4,000 towards selling & administration expenses and insurance and 1,000 still outstanding. Y allowed a cash discount of 5% to a customer to whom goods were sold for 2,00,000. Bad Debts amounted to 16,000.
6. 50% of balance goods are taken over by Y at 60% of Cost.
7. Remaining Goods were destroyed by fire and insurance claim was received by Y to the extent of 60%.

When noting charges are paid by the bank at the time of the dishonor of the bill, the drawee credits ____________.

X draws a bill on Y for Rs. 50,000 for 3 months on 1.1.05. The bill is discounted with banker at a discount of Rs. 1000. At maturity the bill returns dishonored. In the books of X, for dishonor, the bank account will be credited by __________.

When bill is accepted by the acceptor ________.

Goods costing Rs. 4,00,000 were sent by A to B on consignment. 3/4 of the goods were sold by B at a profit of 20% on sale value. Commission payable to consignee is ordinary commission @ 3% and Del-credere commission @ 2%. A customer did not pay due to insolvency Rs. l,500 and another customer deducted Rs. 2,000 because of dispute regarding quality of.goods. Net amount of commission credited to profit and loss account in the books of consignee will be____.

When a bill is discharged, the acceptor debits __________.

When a bill is drawn by A on B, and before the maturity date, B becomes insolvent then in the books of A it is debited to _____________.

When discounted bill is honored drawer passes ________journal entry.