Question
Ajay draws a bill on Vinay for ₹ 60,000. Vinay accepts
it. Ajay endorses it to Chintu in settlement of ₹ 70,000 at 2% discount and the balance in cash. The bill is dishonoured on due date. Calculate the amount by which Ajay is to be debited in the books of Chintu.Solution
Ajay endorsed the bill to chintu: 70,000-2% = 68600 Ajay gave bill worth Rs. 60,000 and rest 8,600 is settled in cash. The bill is dishonoured on due date, so Ajay is to be debited in the books of Chintu by Rs. 60,000.
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