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A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—
- a)Rs. 1,00,000
- b)Rs. 97,000
- c)Rs. 1,10,000
- d)Rs. 98,000
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
A drew an accommodation bill on B for 3 months. Proceeds were to be sh...
To find the total amount of the bill, we need to first calculate the face value of the bill.
Let the face value of the bill be x.
Since the bill is an accommodation bill, it means that B has not actually received any goods or services from A, but is merely lending his name to help A obtain credit. Therefore, B is not liable to pay the amount of the bill unless A defaults on the payment.
Now, the bill is for 3 months and has been discounted at 12% p.a. This means that the effective rate of interest for 3 months is:
Effective rate of interest = (12/100) x (3/12) = 0.03 or 3%
So, the proceeds received by A after discounting the bill would be:
Proceeds = Face value x (1 - Rate of discount) = x x (1 - 0.03) = 0.97x
A remitted Rs. 48,500 to B, which is half of the proceeds. Therefore,
0.5 x 0.97x = Rs. 48,500
Solving for x, we get:
x = Rs. 100,000
So, the face value of the bill is Rs. 100,000.
Therefore, the total amount of the bill is Rs. 100,000 + Rs. 6,000 (interest for 3 months at 12% p.a.) = Rs. 106,000.
Let the face value of the bill be x.
Since the bill is an accommodation bill, it means that B has not actually received any goods or services from A, but is merely lending his name to help A obtain credit. Therefore, B is not liable to pay the amount of the bill unless A defaults on the payment.
Now, the bill is for 3 months and has been discounted at 12% p.a. This means that the effective rate of interest for 3 months is:
Effective rate of interest = (12/100) x (3/12) = 0.03 or 3%
So, the proceeds received by A after discounting the bill would be:
Proceeds = Face value x (1 - Rate of discount) = x x (1 - 0.03) = 0.97x
A remitted Rs. 48,500 to B, which is half of the proceeds. Therefore,
0.5 x 0.97x = Rs. 48,500
Solving for x, we get:
x = Rs. 100,000
So, the face value of the bill is Rs. 100,000.
Therefore, the total amount of the bill is Rs. 100,000 + Rs. 6,000 (interest for 3 months at 12% p.a.) = Rs. 106,000.
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Community Answer
A drew an accommodation bill on B for 3 months. Proceeds were to be sh...
Option A is correct.
explanation-
since both are sharing equal amount hence total amount what they got after discounting with bank is 48500*2=97000
Now 97000 is after 3% discount ( 12% for 12 month then 3% for 3 month)
Bill amount= 97000/97%= 100000
explanation-
since both are sharing equal amount hence total amount what they got after discounting with bank is 48500*2=97000
Now 97000 is after 3% discount ( 12% for 12 month then 3% for 3 month)
Bill amount= 97000/97%= 100000
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A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. Can you explain this answer?
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A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. 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 A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. 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 A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. Can you explain this answer?.
A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. 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 A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. 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 A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. Can you explain this answer?.
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A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—a)Rs. 1,00,000b)Rs. 97,000c)Rs. 1,10,000d)Rs. 98,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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