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X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited by
- a)Rs. 19,900
- b)Rs. 20,000
- c)Rs. 20,100
- d)Rs. 19,800
Correct answer is option 'B'. Can you explain this answer?
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X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is...
Calculation of Bill Discounting and Dishonour:
- X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10.
- The due date or maturity of the bill will be 1.4.10.
- X discounts the bill with a banker, which means he gets the money before maturity by paying some charge or interest to the banker.
- The banker charges Rs. 100 for discounting the bill.
- The amount X receives from the banker will be Rs. 19,900 (20,000 - 100).
- At maturity, Y fails to pay the amount due on the bill, which means the bill is dishonoured.
- Now, X has to record this dishonour in his books of accounts.
Entry for Dishonour in Books of X:
- Since X has received the money from the banker, he has to repay it back to the banker along with any other charges or interest due.
- So, X's bank account will be debited with Rs. 20,000 (the face value of the bill) plus any other charges or interest due.
- X will also have to incur some expenses or losses due to the dishonour of the bill, such as protest fees, legal expenses, etc.
- These expenses or losses will be debited to his profit and loss account.
- The party Y who has failed to pay the bill will be credited in X's books, but this will not affect the bank account entry.
Therefore, the correct answer is option 'B' Rs. 20,000 because X's bank account will be credited by the face value of the bill when it is dishonoured.
- X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10.
- The due date or maturity of the bill will be 1.4.10.
- X discounts the bill with a banker, which means he gets the money before maturity by paying some charge or interest to the banker.
- The banker charges Rs. 100 for discounting the bill.
- The amount X receives from the banker will be Rs. 19,900 (20,000 - 100).
- At maturity, Y fails to pay the amount due on the bill, which means the bill is dishonoured.
- Now, X has to record this dishonour in his books of accounts.
Entry for Dishonour in Books of X:
- Since X has received the money from the banker, he has to repay it back to the banker along with any other charges or interest due.
- So, X's bank account will be debited with Rs. 20,000 (the face value of the bill) plus any other charges or interest due.
- X will also have to incur some expenses or losses due to the dishonour of the bill, such as protest fees, legal expenses, etc.
- These expenses or losses will be debited to his profit and loss account.
- The party Y who has failed to pay the bill will be credited in X's books, but this will not affect the bank account entry.
Therefore, the correct answer is option 'B' Rs. 20,000 because X's bank account will be credited by the face value of the bill when it is dishonoured.
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X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is...
Because at the time of dishonour the bank will not leave the discount.It will take the principal amount I.e,.₹20,000
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X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct answer is option 'B'. Can you explain this answer?
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X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct 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 X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct 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 X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct answer is option 'B'. Can you explain this answer?.
X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct 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 X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct 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 X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct answer is option 'B'. Can you explain this answer?.
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X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct answer is option 'B'. Can you explain this answer?, a detailed solution for X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited bya)Rs. 19,900b)Rs. 20,000c)Rs. 20,100d)Rs. 19,800Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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