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Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered as
- a)Discounted
- b)Dishonoured
- c)Cancelled
- d)Retired
Correct answer is 'C'. Can you explain this answer?
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Verified Answer
Mohit, the acceptor of the bill has to honour a bill on 31st March 201...
In this case, the old bill of Rs. 20,000 will be considered as Cancelled.
Explanation:
- Mohit, the acceptor of the bill, was supposed to pay the amount on 31st March 2016. However, he was unable to do so due to a financial crisis.
- Mohit approaches Rohit on 20th March 2016 for an extension of the bill for an additional 3 months.
- Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500, which includes the original amount of Rs. 20,000 and the interest of Rs. 500. Additionally, Mohit has to pay Rs. 1,000 in cash as interest for the extension.
Since the new bill of Rs. 20,500 has been drawn and the old bill of Rs. 20,000 is no longer valid, the old bill is considered as Cancelled. The new bill takes the place of the old bill, and Mohit is now obligated to pay the new amount on the extended due date.
- Mohit, the acceptor of the bill, was supposed to pay the amount on 31st March 2016. However, he was unable to do so due to a financial crisis.
- Mohit approaches Rohit on 20th March 2016 for an extension of the bill for an additional 3 months.
- Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500, which includes the original amount of Rs. 20,000 and the interest of Rs. 500. Additionally, Mohit has to pay Rs. 1,000 in cash as interest for the extension.
Since the new bill of Rs. 20,500 has been drawn and the old bill of Rs. 20,000 is no longer valid, the old bill is considered as Cancelled. The new bill takes the place of the old bill, and Mohit is now obligated to pay the new amount on the extended due date.
Most Upvoted Answer
Mohit, the acceptor of the bill has to honour a bill on 31st March 201...
He added 500 as noting charges ,it shows that he cancelled the billand pay 500 as noting charges and added this amount in bill
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Community Answer
Mohit, the acceptor of the bill has to honour a bill on 31st March 201...
Explanation:
In this case, the old bill of Rs. 20,000 will be considered as cancelled.
Reasoning:
1. The acceptor of the bill, Mohit, is unable to pay the amount of the bill on the due date due to financial crisis.
2. Mohit approaches Rohit on 20th March 2016, 11 days before the due date, for an extension of the bill for a further 3 months.
3. Rohit agrees to extend the credit period but instead of extending the existing bill, he draws a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash.
4. By drawing a new bill, Rohit is essentially cancelling the old bill of Rs. 20,000 and replacing it with the new bill of Rs. 20,500.
5. The old bill of Rs. 20,000 is no longer valid and will not be honoured on the due date of 31st March 2016.
6. The new bill of Rs. 20,500 will have a fresh due date, which will be 3 months from the date of drawing the new bill.
7. Therefore, the old bill of Rs. 20,000 will be considered as cancelled as it has been replaced by the new bill of Rs. 20,500.
Conclusion:
In this case, the old bill of Rs. 20,000 will be considered as cancelled because it has been replaced by the new bill of Rs. 20,500 with a fresh due date.
In this case, the old bill of Rs. 20,000 will be considered as cancelled.
Reasoning:
1. The acceptor of the bill, Mohit, is unable to pay the amount of the bill on the due date due to financial crisis.
2. Mohit approaches Rohit on 20th March 2016, 11 days before the due date, for an extension of the bill for a further 3 months.
3. Rohit agrees to extend the credit period but instead of extending the existing bill, he draws a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash.
4. By drawing a new bill, Rohit is essentially cancelling the old bill of Rs. 20,000 and replacing it with the new bill of Rs. 20,500.
5. The old bill of Rs. 20,000 is no longer valid and will not be honoured on the due date of 31st March 2016.
6. The new bill of Rs. 20,500 will have a fresh due date, which will be 3 months from the date of drawing the new bill.
7. Therefore, the old bill of Rs. 20,000 will be considered as cancelled as it has been replaced by the new bill of Rs. 20,500.
Conclusion:
In this case, the old bill of Rs. 20,000 will be considered as cancelled because it has been replaced by the new bill of Rs. 20,500 with a fresh due date.
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Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is 'C'. Can you explain this answer?
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Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is '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 Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is '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 Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is 'C'. Can you explain this answer?.
Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is '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 Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is '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 Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is 'C'. Can you explain this answer?.
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Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is 'C'. Can you explain this answer?, a detailed solution for Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is 'C'. Can you explain this answer? has been provided alongside types of Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Mohit, the acceptor of the bill has to honour a bill on 31st March 2016. Due to financial crisis, he is unable to pay the amount of bill of Rs. 20,000. Therefore, he approaches Rohit on 20th March 2016 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered asa)Discountedb)Dishonouredc)Cancelledd)RetiredCorrect answer is 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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