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On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.
On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .
P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P?
On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .
P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P?
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On 1st January 2018 ,P draws a three months bill of exchange for ₹30,0...
1. Background of the Transaction
- On January 1, 2018, P draws a bill of exchange for ₹30,000.
- The bill is accepted by P's debtors on the same day.
- P discounts the bill with his bankers on January 4, 2018, at a discount rate of 15% p.a.
2. Calculation of Discount
- Discount Period: 3 months (January, February, March)
- Discount Calculation:
Discount = Principal × Rate × Time
= ₹30,000 × 15% × (3/12)
= ₹30,000 × 0.15 × 0.25
= ₹1,125
- Cash Received:
Cash = Principal - Discount
= ₹30,000 - ₹1,125
= ₹28,875
3. Dishonour of the Bill
- On the due date, the bill is dishonoured.
- Noting charges = ₹200.
- Total Loss = Discount + Noting Charges = ₹1,125 + ₹200 = ₹1,325.
4. Q's Settlement Offer
- Q offers ₹10,000 cash and two bills:
- Bill 1: ₹12,000 at one month (met on due date).
- Bill 2: ₹8,000 at three months including 12% p.a. interest.
5. Calculation for the Second Bill
- Interest Calculation:
Interest = Principal × Rate × Time
= ₹8,000 × 12% × (3/12)
= ₹240.
- Total Amount of Bill 2:
= ₹8,000 + ₹240 = ₹8,240.
6. Q's Account and Bills Receivable Account
Q's Account
| Date | Particulars | Debit (₹) | Credit (₹) |
|--------------|-------------------------|-----------|------------|
| 01/01/2018 | Cash (₹10,000) | 10,000 | |
| 01/01/2018 | Bills Receivable (₹12,000) | 12,000 | |
| 01/04/2018 | Bills Receivable (₹8,240) | 8,240 | |
| | Total | 30,240 | |
Bills Receivable Account
| Date | Particulars | Debit (₹) | Credit (₹) |
|--------------|-------------------------|-----------|------------|
| 01/01/2018 | Q (Bill 1, ₹12,000) | 12,000 | |
| 01/04/2018 | Q (Bill 2, ₹8,240) | 8,240 | |
| | Dishonoured Bill | | 8,240 |
| | Total | 20,240 | 8,240 |
7. Conclusion
- This transaction illustrates the complexities of managing receivables and the implications of dishonoured
- On January 1, 2018, P draws a bill of exchange for ₹30,000.
- The bill is accepted by P's debtors on the same day.
- P discounts the bill with his bankers on January 4, 2018, at a discount rate of 15% p.a.
2. Calculation of Discount
- Discount Period: 3 months (January, February, March)
- Discount Calculation:
Discount = Principal × Rate × Time
= ₹30,000 × 15% × (3/12)
= ₹30,000 × 0.15 × 0.25
= ₹1,125
- Cash Received:
Cash = Principal - Discount
= ₹30,000 - ₹1,125
= ₹28,875
3. Dishonour of the Bill
- On the due date, the bill is dishonoured.
- Noting charges = ₹200.
- Total Loss = Discount + Noting Charges = ₹1,125 + ₹200 = ₹1,325.
4. Q's Settlement Offer
- Q offers ₹10,000 cash and two bills:
- Bill 1: ₹12,000 at one month (met on due date).
- Bill 2: ₹8,000 at three months including 12% p.a. interest.
5. Calculation for the Second Bill
- Interest Calculation:
Interest = Principal × Rate × Time
= ₹8,000 × 12% × (3/12)
= ₹240.
- Total Amount of Bill 2:
= ₹8,000 + ₹240 = ₹8,240.
6. Q's Account and Bills Receivable Account
Q's Account
| Date | Particulars | Debit (₹) | Credit (₹) |
|--------------|-------------------------|-----------|------------|
| 01/01/2018 | Cash (₹10,000) | 10,000 | |
| 01/01/2018 | Bills Receivable (₹12,000) | 12,000 | |
| 01/04/2018 | Bills Receivable (₹8,240) | 8,240 | |
| | Total | 30,240 | |
Bills Receivable Account
| Date | Particulars | Debit (₹) | Credit (₹) |
|--------------|-------------------------|-----------|------------|
| 01/01/2018 | Q (Bill 1, ₹12,000) | 12,000 | |
| 01/04/2018 | Q (Bill 2, ₹8,240) | 8,240 | |
| | Dishonoured Bill | | 8,240 |
| | Total | 20,240 | 8,240 |
7. Conclusion
- This transaction illustrates the complexities of managing receivables and the implications of dishonoured
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On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P?
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On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P? 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 On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P?.
On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P? 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 On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P?.
Solutions for On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P? defined & explained in the simplest way possible. Besides giving the explanation of
On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P?, a detailed solution for On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P? has been provided alongside types of On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P? theory, EduRev gives you an
ample number of questions to practice On 1st January 2018 ,P draws a three months bill of exchange for ₹30,000 on his debtors who accepts it on same date. P discounts bill on 4th January 2018 with his bankers ,discount rate being 15%p.a.On due date ,bill is dishonoured, the noting charges being ₹200 .Q immediately makes an offer to P to pay him ₹10000 cash on account to settle the balance by agreeing to accept one bill of exchange for ₹12000 at one month and the other for balance at three months , the latter including interest at 12%p.a. for the bills .P accepts the arrangement. The bill for ₹12000 is met on the due date but the other bill is dishonoured. Show Q's account and bills receivable account in books of P? tests, examples and also practice CA Foundation tests.
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