CA Foundation Exam > CA Foundation Questions > A bill of 12,000 was discounted by A with the...
Start Learning for Free
A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from A’s bank balance at the time of such dishonour?
- a)12,000
- b)11,880
- c)12,020
- d)11,900
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A bill of 12,000 was discounted by A with the banker for 11,880. At ma...
Discounting a Bill of Exchange
Given information:
- Bill amount = Rs 12,000
- Bill discounted by A with the banker for Rs 11,880
- Bill returned dishonoured with noting charges of Rs 20
To understand how much amount will the bank deduct from A's bank balance at the time of dishonour, we need to understand the concept of discounting a bill of exchange.
Discounting a bill of exchange means that the holder of the bill (in this case, A) can get the money from the banker before the maturity date of the bill. The banker deducts a certain amount (discount) from the bill amount and pays the remaining amount to the holder. At maturity, the banker collects the full amount from the debtor (in this case, the person who owes Rs 12,000 to A) and returns the money to the holder (A).
Calculation:
- Bill amount = Rs 12,000
- Discount = Rs 120 (11,880 - 12,000)
- Amount paid to A = Rs 11,880
- Noting charges = Rs 20
- Total amount deducted by the bank from A's account = Discount + Noting charges = Rs 140
- Amount remaining in A's account = Amount paid to A - Total amount deducted = 11,880 - 140 = Rs 12,020
Therefore, option C (12,020) is the correct answer.
Given information:
- Bill amount = Rs 12,000
- Bill discounted by A with the banker for Rs 11,880
- Bill returned dishonoured with noting charges of Rs 20
To understand how much amount will the bank deduct from A's bank balance at the time of dishonour, we need to understand the concept of discounting a bill of exchange.
Discounting a bill of exchange means that the holder of the bill (in this case, A) can get the money from the banker before the maturity date of the bill. The banker deducts a certain amount (discount) from the bill amount and pays the remaining amount to the holder. At maturity, the banker collects the full amount from the debtor (in this case, the person who owes Rs 12,000 to A) and returns the money to the holder (A).
Calculation:
- Bill amount = Rs 12,000
- Discount = Rs 120 (11,880 - 12,000)
- Amount paid to A = Rs 11,880
- Noting charges = Rs 20
- Total amount deducted by the bank from A's account = Discount + Noting charges = Rs 140
- Amount remaining in A's account = Amount paid to A - Total amount deducted = 11,880 - 140 = Rs 12,020
Therefore, option C (12,020) is the correct answer.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Top Courses for CA FoundationView all
A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer?
Question Description
A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer?.
A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer?.
Solutions for A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer?, a detailed solution for A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from As bank balance at the time of such dishonour?a)12,000b)11,880c)12,020d)11,900Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup