On 1st January, 2015, Vinod drew and Pramod accepted a bill at three months for ~ 2,000. On 4th January, 2015 Vinod discounted the bill with his bank at 15% p.a. and remitted half the proceeds to Pramod. On 1st February, 2015 Pramod drew and Vinod accepted a bill at four months for ~ 1,500. […]

Arun and Anand were friends and in need of funds. On 1.1.2015 Arun drew a bill for ~ 2,00,000 for 3 months on Anand. On 4.1.2015 Arun got the bill discounted at 10% p.a. and remitted half of the proceeds to Anand. On the due date, Arun could not remit his share, instead, he accepted

G and K enter into an accommodation arrangement whereunder the proceeds are to be shared as 2/3 and 1/3 respectively. G draws a bill for ~ 45,000 on 3rd April, 2015 at 3 months. G gets it discounted for ~ 44,600 and on 5th April, remits K’s share to him. On due date, K pays

Rita for mutual accommodation of 2 : 1 with Mita draw on the latter two bills of ~ 9,000 and ~ 6,000 for 3 months and 4 months respectively on 5th March, 2014. Both the bills were discounted with the bank on 8th March, 2014 @ 12% p.a. interest. On the due date of the

A, B and C, for mutual accommodation, drew and accepted the following bills: A drew on B for ~ 10,000 and on C ~ 8,000; B drew on A for ~ 12,000 and on C ~ 20,000; C drew on A for ~ 18,000 and on B ~ 7,000. All the bills were discounted at

Which of the following is true ? A. no cancellation entry is required when a bill is renewed B. a banker holds discounted bills as an agent for collection C. discount at the time of retirement of a bill in a gain for the drawee D. the noting charges are ultimately borne by the drawer.

Which of the following is true ? A. noting is not a legally acceptable evidence of dishonour B. when a bill is honoured, notice must be given to the prior parties. C. a renewed bill re-establishes the acknowledgment of the debt of the drawee D. upon retirement, the drawer of the bill gets a fixed

Patel received from one of his customers a bill at three months for ~ 16,000. He discounted it on the same day at 10 per cent per annum with his bankers. On the date of maturity, the bill was dishonoured and the bank incurred noting charges of ~ 80. However, the customer paid him ~

D owes ~ 6,000 to S. The debt is discharged by D on 1.6.2014 by accepting two bills of exchange drawn on him by S —- one for ~ 4,000 at 2 months and the other for ~ 2,000 at 3 months. The first bill is endorsed in favour of R, a creditor, in full

S. Sen and B. Banerjee have a number of transactions on bills of exchange between them. You are required to show the journal entries in their books in respect of the following transactions : 1.1.2015 Sen draws a bill on Banerjee for ~ 15,450 payable after a month, inclusive of interest at 3% p.m. 3.1.2015