Multiple choice

A draws a bill of Rs. 20,000 for 3 months on 1.1.09. The bill was discounted by a banker who charged 100 as discounting charges. At maturity, the bill returned dishonored. With what amount will the bank account be credited in the books of A?

  1. 19,000

  2. 20,000

  3. 20,100

  4. 19,900

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When the bill is dishonoured, the full amount of bill is credited to the bank account in the books of the drawer.