A has discounted a 3 month’s bill @ 10% p.a. from bank and has been given a credit of Rs. 11,700 but the bill was dishonoured and a notary charge of 50 was paid by bank. The amount by which A’s account will be debited by bank is

Let the actual amount of bill be Rs. x. Discount @ 10% p.a. for 3 months will be x/40 and net amount realised will be x - x/40 = 39/40. Now, 39/40 of x = 11,700 Thus, the amount of bill is Rs. 12,000, but on maturity being dishonoured, it will be debited along with charges of Rs. 50. Thus, the correct answer will be Rs. 12,050.