CA Foundation Exam > CA Foundation Questions > A draws a bill on B for Rs 50,000 for 3 month...
Start Learning for Free
A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, 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:
- a)Rs.20,200
- b)Rs.30,300
- c)Rs.19,800
- d)Rs.19000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill ...
Calculation of the Deficiency Amount:
To calculate the deficiency amount in the books of B, we need to consider the following factors:
1. Bill Amount: The bill drawn by A on B is Rs 50,000.
2. Tenure: The duration of the bill is 3 months.
3. Noting Charges: At maturity, the bill was returned dishonored and noting charges of Rs 500 were incurred.
4. Recovery: 40 paise in a rupee, i.e., 40/100, is recovered from B's estate.
Calculation:
Step 1: Calculate the Interest on the Bill
Interest can be calculated using the formula:
Interest = (Bill Amount * Rate * Time) / 100
Given:
Bill Amount = Rs 50,000
Time = 3 months
Since the rate is not given, we need to assume an interest rate. Let's assume the rate is 12%.
Interest = (50,000 * 12 * 3) / 100
= 18,000
Step 2: Calculate the Total Amount Payable
Total Amount Payable = Bill Amount + Interest + Noting Charges
Total Amount Payable = 50,000 + 18,000 + 500
= 68,500
Step 3: Calculate the Amount Recovered
Amount Recovered = (Total Amount Payable * Recovery Percentage) / 100
Given:
Recovery Percentage = 40 paise in a rupee = 40/100 = 0.4
Amount Recovered = (68,500 * 0.4) / 100
= 274
Step 4: Calculate the Deficiency Amount
Deficiency Amount = Total Amount Payable - Amount Recovered
Deficiency Amount = 68,500 - 274
= 68,226
Therefore, the deficiency amount to be recorded on insolvency in the books of B is Rs. 68,226.
Conclusion:
The correct option is B) Rs. 30,300.
To calculate the deficiency amount in the books of B, we need to consider the following factors:
1. Bill Amount: The bill drawn by A on B is Rs 50,000.
2. Tenure: The duration of the bill is 3 months.
3. Noting Charges: At maturity, the bill was returned dishonored and noting charges of Rs 500 were incurred.
4. Recovery: 40 paise in a rupee, i.e., 40/100, is recovered from B's estate.
Calculation:
Step 1: Calculate the Interest on the Bill
Interest can be calculated using the formula:
Interest = (Bill Amount * Rate * Time) / 100
Given:
Bill Amount = Rs 50,000
Time = 3 months
Since the rate is not given, we need to assume an interest rate. Let's assume the rate is 12%.
Interest = (50,000 * 12 * 3) / 100
= 18,000
Step 2: Calculate the Total Amount Payable
Total Amount Payable = Bill Amount + Interest + Noting Charges
Total Amount Payable = 50,000 + 18,000 + 500
= 68,500
Step 3: Calculate the Amount Recovered
Amount Recovered = (Total Amount Payable * Recovery Percentage) / 100
Given:
Recovery Percentage = 40 paise in a rupee = 40/100 = 0.4
Amount Recovered = (68,500 * 0.4) / 100
= 274
Step 4: Calculate the Deficiency Amount
Deficiency Amount = Total Amount Payable - Amount Recovered
Deficiency Amount = 68,500 - 274
= 68,226
Therefore, the deficiency amount to be recorded on insolvency in the books of B is Rs. 68,226.
Conclusion:
The correct option is B) Rs. 30,300.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer?
Question Description
A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer?.
A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer?.
Solutions for A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. 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 draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A draws a bill on B for Rs 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs 500. 40 paise in a rupee is recovered from Bs estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs.20,200b)Rs.30,300c)Rs.19,800d)Rs.19000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup