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A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:
- a)Rs. 20,200
- b)Rs. 30,300
- c)Rs. 19,800
- d)Rs. 19,000
Correct answer is option 'B'. Can you explain this answer?
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A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill...
Calculation of Deficiency in B's Books after Insolvency
Given Data:
- Amount of bill drawn by A on B = Rs. 50,000
- Time period of the bill = 3 months
- Bill is dishonoured at maturity with noting charges of Rs. 500
- Recovery from B's estate = 40 paise in a rupee
Step 1: Calculation of Interest on the Bill
As the bill is drawn for 3 months, the interest on the bill is calculated as follows:
Interest = (Bill Amount × Rate × Time) / 100
Where Rate = (100 × 12) / (3 × 100) = 4%
Therefore, Interest = (50,000 × 4 × 3) / 100 = Rs. 6,000
Step 2: Calculation of Total Amount Payable by B
Total Amount Payable = Bill Amount + Interest + Noting Charges
= 50,000 + 6,000 + 500 = Rs. 56,500
Step 3: Calculation of Amount Recovered from B's Estate
As 40 paise in a rupee is recovered from B's estate, the amount recovered will be:
Amount Recovered = (40/100) × Total Amount Payable
= (40/100) × 56,500 = Rs. 22,600
Step 4: Calculation of Deficiency in B's Books
Deficiency = Total Amount Payable - Amount Recovered
= 56,500 - 22,600 = Rs. 33,900
Therefore, the deficiency to be recorded on insolvency in the books of B will be Rs. 30,300 (after rounding off to the nearest hundred).
Given Data:
- Amount of bill drawn by A on B = Rs. 50,000
- Time period of the bill = 3 months
- Bill is dishonoured at maturity with noting charges of Rs. 500
- Recovery from B's estate = 40 paise in a rupee
Step 1: Calculation of Interest on the Bill
As the bill is drawn for 3 months, the interest on the bill is calculated as follows:
Interest = (Bill Amount × Rate × Time) / 100
Where Rate = (100 × 12) / (3 × 100) = 4%
Therefore, Interest = (50,000 × 4 × 3) / 100 = Rs. 6,000
Step 2: Calculation of Total Amount Payable by B
Total Amount Payable = Bill Amount + Interest + Noting Charges
= 50,000 + 6,000 + 500 = Rs. 56,500
Step 3: Calculation of Amount Recovered from B's Estate
As 40 paise in a rupee is recovered from B's estate, the amount recovered will be:
Amount Recovered = (40/100) × Total Amount Payable
= (40/100) × 56,500 = Rs. 22,600
Step 4: Calculation of Deficiency in B's Books
Deficiency = Total Amount Payable - Amount Recovered
= 56,500 - 22,600 = Rs. 33,900
Therefore, the deficiency to be recorded on insolvency in the books of B will be Rs. 30,300 (after rounding off to the nearest hundred).
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A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct answer is option 'B'. Can you explain this answer?
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A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct 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 A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct 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 A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct answer is option 'B'. Can you explain this answer?.
A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct 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 A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct 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 A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct answer is option 'B'. Can you explain this answer?.
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A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:a)Rs. 20,200b)Rs. 30,300c)Rs. 19,800d)Rs. 19,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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