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Mr. sobby draws a two months bill of 50000 ruppes on dobby and dobby accepts it on 1st Feb 2016 sobby discounts it on 15th February 2016 at 18% per annum. on the due date of bill dobby become insolvent and .50 paise in a rupee could be recovered from his estate. calculate the amount of bad debt. a) 25000 b)18874 c)23374 d)27300
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Mr. sobby draws a two months bill of 50000 ruppes on dobby and dobby a...
Calculating the Bad Debt:
- Amount of the Bill:
- The face value of the bill drawn by Mr. Sobby on Dobby is 50000 rupees.
- Discounted Value:
- The bill was discounted at 18% per annum for a period of 14 days (from 1st Feb to 15th Feb).
- Using the formula for calculating the discounted value of the bill:
- D = \[ \frac{F \times R \times T}{100} \]
- Where D is the discounted value, F is the face value (50000 rupees), R is the rate of discount (18% per annum), and T is the time in years (14/365).
- Plugging in the values, we get:
- D = \[ \frac{50000 \times 18 \times \frac{14}{365}}{100} \]
- D ≈ 988.44 rupees
- Amount Recoverable:
- Since Dobby became insolvent, only 50 paise in a rupee could be recovered from his estate.
- Amount recoverable = 50000 rupees x 0.50 = 25000 rupees
- Bad Debt Amount:
- Bad debt amount = Face value of the bill - Amount recoverable
- Bad debt amount = 50000 rupees - 25000 rupees
- Bad debt amount = 25000 rupees
Therefore, the amount of bad debt in this scenario is 25000 rupees (Option a).
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Mr. sobby draws a two months bill of 50000 ruppes on dobby and dobby a...
D 27300
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Mr. sobby draws a two months bill of 50000 ruppes on dobby and dobby accepts it on 1st Feb 2016 sobby discounts it on 15th February 2016 at 18% per annum. on the due date of bill dobby become insolvent and .50 paise in a rupee could be recovered from his estate. calculate the amount of bad debt. a) 25000 b)18874 c)23374 d)27300
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Mr. sobby draws a two months bill of 50000 ruppes on dobby and dobby accepts it on 1st Feb 2016 sobby discounts it on 15th February 2016 at 18% per annum. on the due date of bill dobby become insolvent and .50 paise in a rupee could be recovered from his estate. calculate the amount of bad debt. a) 25000 b)18874 c)23374 d)27300 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 Mr. sobby draws a two months bill of 50000 ruppes on dobby and dobby accepts it on 1st Feb 2016 sobby discounts it on 15th February 2016 at 18% per annum. on the due date of bill dobby become insolvent and .50 paise in a rupee could be recovered from his estate. calculate the amount of bad debt. a) 25000 b)18874 c)23374 d)27300 covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. sobby draws a two months bill of 50000 ruppes on dobby and dobby accepts it on 1st Feb 2016 sobby discounts it on 15th February 2016 at 18% per annum. on the due date of bill dobby become insolvent and .50 paise in a rupee could be recovered from his estate. calculate the amount of bad debt. a) 25000 b)18874 c)23374 d)27300.
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