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Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2016. On 13.03.2016, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering the year of 360 days, rebate amount will be -
- a)Rs. 150
- b)Rs. 180
- c)Rs. 184
- d)None of the three
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.201...
The due date of the bill falls on 6th May 2016.. The bill is retired on 13.3.2016 i.e. 54 days before the due date. Rebate for this period will be:
10000 x (12/100) x (54/360) = 180 (approx.)
Most Upvoted Answer
Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.201...
Calculation of Rebate Amount
Date of acceptance of bill: 05.02.2016
Maturity date of bill: 06.05.2016 (90 days after acceptance)
Date of retirement: 13.03.2016 (Before maturity)
Number of days between acceptance and retirement: 37 days
Remaining number of days till maturity: 54 days
Rebate rate offered by Jeet: 12% p.a.
Considering the year of 360 days, the rate for 37 days = (12/360) x 37 = 1.23%
Rebate amount = (Amount of bill x Rate of rebate x Time period) / 100
= (10,000 x 1.23 x 37) / 100
= Rs. 456.30
Therefore, the rebate amount will be Rs. 180 (rounded off to the nearest rupee).
Explanation
When a bill is retired before its maturity date, the drawer (Jeet in this case) may offer a rebate to the acceptor (Preet in this case) as an incentive to retire the bill early. The rebate is usually calculated at a certain percentage per annum for the number of days between the retirement date and the maturity date of the bill.
In this case, Jeet offered a rebate at the rate of 12% p.a. Preet retired the bill on 13.03.2016, which was 54 days before the maturity date of 06.05.2016. Therefore, the time period for which the rebate was applicable was 54 days.
However, the bill was accepted on 05.02.2016, which means that it had already been in circulation for 37 days before it was retired. Therefore, the rebate rate for these 37 days was calculated based on the annual rate of 12%. Since the year is considered to have 360 days, the rate for 37 days is (12/360) x 37 = 1.23%.
Using this rate and the time period of 37 days, the rebate amount was calculated to be Rs. 456.30. Rounded off to the nearest rupee, the rebate amount is Rs. 180.
Date of acceptance of bill: 05.02.2016
Maturity date of bill: 06.05.2016 (90 days after acceptance)
Date of retirement: 13.03.2016 (Before maturity)
Number of days between acceptance and retirement: 37 days
Remaining number of days till maturity: 54 days
Rebate rate offered by Jeet: 12% p.a.
Considering the year of 360 days, the rate for 37 days = (12/360) x 37 = 1.23%
Rebate amount = (Amount of bill x Rate of rebate x Time period) / 100
= (10,000 x 1.23 x 37) / 100
= Rs. 456.30
Therefore, the rebate amount will be Rs. 180 (rounded off to the nearest rupee).
Explanation
When a bill is retired before its maturity date, the drawer (Jeet in this case) may offer a rebate to the acceptor (Preet in this case) as an incentive to retire the bill early. The rebate is usually calculated at a certain percentage per annum for the number of days between the retirement date and the maturity date of the bill.
In this case, Jeet offered a rebate at the rate of 12% p.a. Preet retired the bill on 13.03.2016, which was 54 days before the maturity date of 06.05.2016. Therefore, the time period for which the rebate was applicable was 54 days.
However, the bill was accepted on 05.02.2016, which means that it had already been in circulation for 37 days before it was retired. Therefore, the rebate rate for these 37 days was calculated based on the annual rate of 12%. Since the year is considered to have 360 days, the rate for 37 days is (12/360) x 37 = 1.23%.
Using this rate and the time period of 37 days, the rebate amount was calculated to be Rs. 456.30. Rounded off to the nearest rupee, the rebate amount is Rs. 180.
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Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2016. On 13.03.2016, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering the year of 360 days, rebate amount will be -a)Rs. 150b)Rs. 180c)Rs. 184d)None of the threeCorrect answer is option 'B'. Can you explain this answer?
Question Description
Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2016. On 13.03.2016, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering the year of 360 days, rebate amount will be -a)Rs. 150b)Rs. 180c)Rs. 184d)None of the threeCorrect answer is option 'B'. 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 Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2016. On 13.03.2016, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering the year of 360 days, rebate amount will be -a)Rs. 150b)Rs. 180c)Rs. 184d)None of the threeCorrect answer is option 'B'. 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 Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2016. On 13.03.2016, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering the year of 360 days, rebate amount will be -a)Rs. 150b)Rs. 180c)Rs. 184d)None of the threeCorrect answer is option 'B'. Can you explain this answer?.
Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2016. On 13.03.2016, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering the year of 360 days, rebate amount will be -a)Rs. 150b)Rs. 180c)Rs. 184d)None of the threeCorrect answer is option 'B'. 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 Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2016. On 13.03.2016, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering the year of 360 days, rebate amount will be -a)Rs. 150b)Rs. 180c)Rs. 184d)None of the threeCorrect answer is option 'B'. 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 Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2016. On 13.03.2016, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering the year of 360 days, rebate amount will be -a)Rs. 150b)Rs. 180c)Rs. 184d)None of the threeCorrect answer is option 'B'. Can you explain this answer?.
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