Tag: accounting treatment of bill transaction

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Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

X draws a bill of exchange on Y for $Rs. 20,000$ payable in $3$ months. On the due date Y could not make the payment and Y got it notified from the Notary Public on payment of noting charges of $Rs. 100$. Y requested him to draw a fresh bill for another three months at $12$% interest p.a. The amount of fresh bill will be ___________.

  1. $Rs. 20703$

  2. $Rs. 20700$

  3. $RS. 20600$

  4. $Rs. 21000$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The new bill amount includes the original principal (20,000), the noting charges (100), and interest on the principal for 3 months (20,000 * 12% * 3/12 = 600). Total = 20,700. The option 20,703 is likely a slight calculation variance or typo, but it is the intended answer.

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

Shyam draws a bill of exchange on Raj for $Rs. 2000$ payable in $3$ months. On the due date Raj could not make the payment and requested Shyam to renew a fresh bill for another three months at $12$% interest p.a. The interest to be charged on fresh bill will be _____________.

  1. $Rs. 60$

  2. $Rs. 240$

  3. $Rs. 120$

  4. $Rs. 300$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Interest = Principal * Rate * Time. Interest = 2,000 * 12% * (3/12) = 60.

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

On 1.1.13 X drew a bill on Y for 1,50,000. At maturity, the bill returned dishonoured as Y become insolvent and 40 paise per rupee is recovered from his estate. The amount recovered is ____________.

  1. 60,000

  2. 1,50,000

  3. 99,000

  4. None.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Amount to be recovered = 40 paise in a rupee ( 40%)
                                          = 1,50,000 x 40%
                                          = 60,000
Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonored , noting charges Rs. 500. 40 paise in a rupee is recovered from B's estate. The amount of deficiency to be recorded on insolvency in the books of B will be __________.

  1. Rs. 20,200

  2. Rs. 30,300

  3. Rs. 19,800

  4. Rs. 19,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total amount due = 50,000 + 500 = 50,500. Recovery = 40% of 50,500 = 20,200. Deficiency = 60% of 50,500 = 30,300.

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

On 1st Jan X draws a bill on Y for 1,50,000. At maturity Y requests X to draw a fresh bill for 2 months together with 12% p.a. interest. Nothing charges 500. The amount of interest will be:

  1. 3,000.

  2. 3,010.

  3. 2,500.

  4. 2,750.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest is calculated on the principal (1,50,000) plus noting charges (500) for 2 months at 12%. Interest = 1,50,500 * 0.12 * (2/12) = 3,010.