Tag: dishonour of a bill

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 ___________.

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 ________.