Multiple choice

A bill of Rs. 12, 000 was discounted by A with the banker for Rs. 11, 880. At maturity, the bill returned dishonored, noting charges Rs. 20. How much amount will the bank deduct from A's bank balance at the time of such dishonor?

  1. Rs. 12, 000

  2. Rs. 11, 880

  3. Rs. 12, 020

  4. Rs. 11, 900
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 If a discounted cheque gets dishonored, bank collects the amount of bill as well as noting charges from A. Thus, Amount to be deducted                       =Rs (20000+20)                                                                             =Rs 20,020

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