CA CPT Model Test Paper 11 with solutions for online practice
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Question : 31 of 200
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S draws 2 bills of exchange on 1.1.2011 for 3,000 and Rs. 5,000 respectively. The bill of exchange for Rs. 3,000 is for 2 months, while the bill of exchange for Rs. 5,000 is for 3 months. These bills are accepted by K. on 4.3.2011 K requests S to renew the first bill with interest at 18% p.a. for a period of 2 months. S agrees to this proposal. On 20.3.2011 K retires the acceptance for Rs. 5,000 the interest rebate i.e., discount being Rs. 50.
Before the due date of the renewed bill K becomes insolvent and only 60 paise in a rupee can be recovered from his estate. How much bad debt will be recorded in the books of S:
Before the due date of the renewed bill K becomes insolvent and only 60 paise in a rupee can be recovered from his estate. How much bad debt will be recorded in the books of S:
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