Bill Of Rs 40000 was discounted by p with his bank for 39000 at maturi...
Calculation of Deduction from P's Bank Balance
Discounted Amount
- The bill was discounted by P's bank for Rs 39,000.
Noting Charges
- The bill was returned dishonoured with noting charges of Rs 500.
Total Deduction
- The total deduction from P's bank balance would be Rs 39,500 (Rs 39,000 discounted amount + Rs 500 noting charges).
Explanation
- When a bill is discounted, the bank pays the bill amount to the holder of the bill (in this case, P) before the bill's maturity date.
- At maturity, the bank collects the bill amount from the drawer of the bill (the person who owes the money).
- If the drawer fails to pay the bill amount, the bill is returned dishonoured, and the bank incurs noting charges.
- The noting charges are the expenses incurred by the bank for recording the dishonour of the bill.
- The bank deducts the discounted amount and noting charges from P's bank balance at the time of such dishonour.
- In this case, the bank will deduct Rs 39,500 from P's bank balance when the bill is returned dishonoured.
Bill Of Rs 40000 was discounted by p with his bank for 39000 at maturi...
40500
40000 for the bill, and 500 for noting charges