Tag: definition, characteristics and parties of bills of exchange

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Multiple choice 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

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?

  1. Rs. 1,200

  2. Rs. 1,800

  3. Rs. 1,100

  4. Rs. 800
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The second bill is for 84,000 and discounted for 82,200, so the discount is 1,800. The ratio is 2:1. Ram bears 2/3 of the discount: 1,800 * (2/3) = 1,200.

Multiple choice 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

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 ________.

  1. Commission

  2. Discount

  3. Selling price

  4. Cost
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

discount

Multiple choice 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

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 ?

  1. $Rs. 10,000$

  2. $Rs. 12,000$

  3. $Rs. 16,000$

  4. Data inadequate

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
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
Multiple choice 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

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

  1. Rs. $162$

  2. Rs. $172$

  3. Rs. $193$

  4. Rs. $192$
Reveal answer Fill a bubble to check yourself
D Correct answer
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. $192$

Multiple choice 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

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 

  1. Rs. 22400

  2. Rs. 23800

  3. Rs. 24600

  4. Rs. 26000
Reveal answer Fill a bubble to check yourself
C Correct answer
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$=24600$