CA Foundation · Accounting · Bills of Exchange and Promissory Notes
Gopal accepted a bill of ₹90,000 drawn by Hari for 4 months. At maturity Gopal was unable to pay, and Hari paid noting charges of ₹1,000. Gopal paid ₹30,000 plus the noting charges in cash and accepted a new 3-month bill for the balance with interest of ₹2,700 on the balance. What is the amount of the new bill?
The new bill is ₹62,700. Gopal owes ₹91,000 including noting charges, pays ₹31,000 in cash, leaving ₹60,000. Adding the agreed interest of ₹2,700 to this balance gives the amount of the renewed bill.
- A₹62,700Correct
- B₹60,000
- C₹92,700
- D₹63,700
Explanation
Total due = 90,000 + 1,000 = ₹91,000. Gopal pays ₹30,000 + ₹1,000 noting charges = ₹31,000 in cash. Balance = 91,000 − 31,000 = ₹60,000. Adding interest of ₹2,700 gives a new bill of ₹62,700. ₹63,700 wrongly adds noting charges again.
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