CA Foundation · Accounting · Bills of Exchange and Promissory Notes
Anil Traders holds a bill for ₹80,000 accepted by Bhavesh & Co. The bill is dishonoured on maturity and noting charges of ₹500 are paid by Anil Traders. What is the amount for which Bhavesh & Co. is debited in Anil Traders' books on dishonour?
Bhavesh & Co. is debited with ₹80,500. The holder debits the acceptor with the bill's face value of ₹80,000 plus the ₹500 noting charges paid, since both amounts are recoverable from the acceptor after dishonour.
- A₹80,000
- B₹79,500
- C₹80,500Correct
- D₹500
Explanation
On dishonour, Bhavesh & Co.'s account is debited with the bill amount of ₹80,000 plus noting charges of ₹500, making ₹80,500. ₹80,000 omits the charges, and ₹79,500 wrongly deducts them.
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