Tag: advantages of bill of exchange

Questions Related to advantages of bill of exchange

Ram draws on Mohan a bill for Rs. 60,000 on April 1,2005, for two months. Mohan accepts the bill and sends it to Ram, who gets the bill discounted for Rs. 58,800. Ram remits Rs. 19,600 to Mohan. On the due date Ram being unable to remit due amount to Mohan, agrees to accept a bill for Rs. 84,000 for two months. This bill is discounted by Mohan, for Rs. 82,200. Mohan remits Rs. 14,800 to Ram. What will be the discount borne by Ram on second bill?

elements of book keeping and accountancy commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Rs. 1,200

  2. Rs. 1,800

  3. Rs. 1,100

  4. Rs. 800

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Correct Option: A

A shopkeeper may sell an article for less than the marked price for some reason. The difference between the marked price and the lowered selling price is called the ________.

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Commission

  2. Discount

  3. Selling price

  4. Cost

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Correct Option: A
Explanation:

discount

Tarun got $30%$ concession on the labelled price of an article and sold it for $Rs. 8750$ with $25%$ profit on the price he bought. What was the labelled price ?

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. $Rs. 10,000$

  2. $Rs. 12,000$

  3. $Rs. 16,000$

  4. Data inadequate

  5. None of these

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Correct Option: A
Explanation:
Let the labelled price be $x$ Rs
$\therefore $ Price at which $=x-\dfrac{30}{10}\times x$
he bought $=\left(\dfrac{7x}{10}\right)$ Rs
Also profit is $25\%$
$\therefore  125\% $ of $\dfrac{7x}{10}=8750$ Rs
$\therefore \dfrac{5}{4}\times \dfrac{7x}{10}=8750$ Rs
$\therefore x=\dfrac{8750\times 4\times 10}{5\times 7}$
$\therefore x=10000$ Rs
$\therefore $ Labelled price is $10000$ Rs

An article marked at Rs. 450 is sold at a discount of 20%. Find the discount given,

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Rs. $90$

  2. Rs. $100$

  3. Rs. $110$

  4. Rs. $120$

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Correct Option: A
Explanation:

Discount $ = \dfrac {20}{100} \times 450 = Rs 90 $

A businessman marks his goods in such a way that even after allowing $12.5 \%$ discount on a cash purchase he gains $20 \%$. If the cost price is Rs. $140$, the marked price is

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Rs. $162$

  2. Rs. $172$

  3. Rs. $193$

  4. Rs. $192$

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Correct Option: D
Explanation:

Business man gains $20\%$ on his cost price, that means, he has sold his goods,
$140 + \dfrac{140\times20}{100} =$ Rs. $168$
Selling price $= 168$

Now, let marked price was Rs. $x$
According to question,
$x - \dfrac{12.5 x}{100} = 168$
$\Rightarrow\dfrac{100x - 12.5 x}{100} = 168$
$\Rightarrow 100x - 12.5 x = 16800$
$\Rightarrow 87.5 x = 16800$
$\Rightarrow x = \dfrac{16800}{87.5}$
$\Rightarrow x = 192$
So, marked price was Rs. $192$

A money lender finds that due to reducing the interest rate decrease from $8\%$ to $7\dfrac{3}{4}\%$, his yearly income diminishes by Rs. 61.50. His capital is 

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Rs. 22400

  2. Rs. 23800

  3. Rs. 24600

  4. Rs. 26000

Show answer
Correct Option: C
Explanation:
Difference in rate$=\left(8-7\dfrac{3}{4}\right)\%=\dfrac{1}{4}\%$
Let the capital be rate Rs.$x$
$\therefore  \dfrac{1}{4}\%$ of $x=61.50$
$\therefore x = 61.50\times 100\times 4$
     Rs$=24600$

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

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. Acceptors account

  2. Third partys account

  3. Neither of the two

  4. None of the above

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Correct Option: A

A bill of Rs 23000 dishonoured and noting charges paid by Drawer is Rs. 100 than Drawee's A/c will be Debited for Rs. __________.

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. 23100

  2. 23000

  3. 100

  4. none

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Correct Option: A

When noting charges are paid by the bank at the time of the dishonour of the bill, the drawee credits:

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. Bank account

  2. Noting charges account

  3. Neither (a) nor (b)

  4. None of these

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Correct Option: C

At the time of endorsement of a bill, the drawer credits:

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. The drawee

  2. The endorsees personal account

  3. Bills receivable account

  4. either (A) or (B)

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Correct Option: C