X DRAWS A BILL ON Y FOR RS 20000 FOR THREE MONTHS ON 1 1 05 THE BILL IS - Accountancy - Bills of Exchange

Question

X DRAWS A BILL ON Y FOR RS 20000 FOR THREE MONTHS ON 1 1 05 THE
BILL IS DISCOUNTED WITH BANKER AT A CHARGE OF 100 ,AT MATURUTY THE
BILL RETURNS DISHONOURED , IN THE BOOK OF X ,FOR DISHONOUR ,THE
BANK ACCOUNT WILL BE CREDITED BY HOU MUCH AMOUNT ?

Manisha Arora · Accepted Answer

Dear Student, Bank A/c should be Credited with Rs 20,100 (including
Rs 100 as Noting Charges, paid by Bank)

X DRAWS A BILL ON Y FOR RS 20000 FOR THREE MONTHS ON 1.1.05. THE BILL IS DISCOUNTED WITH BANKER AT A CHARGE OF 100 ,AT MATURUTY THE BILL RETURNS DISHONOURED , IN THE BOOK OF X ,FOR DISHONOUR ,THE BANK ACCOUNT WILL BE CREDITED BY HOU MUCH AMOUNT ?