Question

. X drew a bill on Y for Rs 20,000 for3 months on 1- 1-2017. The bill was discounted with banker at a

charge of Rs 100.At maturity the bill was returned dishonored, the bank paid Rs 100 as Noting

charges. The bank account will be credited, in the books of X, for dishonor with:

(a) Rs 19,900 (b) Rs20,000

(c) Rs 20,100 (d)Rs19,800
​

Answer 1

The bank account will be credited, in the books of X, for dishonor with:

Explanation:

B) 20000

The bank will take the principle amount because at the time of dishonor the bank will not leave the discount at the time of dishonor.