​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.​

Correct option is D

Correct Answer: (d) ₹ 70,000

Explanation:

• Bill amount = ₹ 60,000
• Discount = 2% of ₹ 70,000 = ₹ 1,400
• Thus, Ajay settled ₹ 70,000 by giving:
• Bill = ₹ 60,000
• Cash = ₹ 8,600 (i.e., ₹ 70,000 – ₹ 61,400)
• When the bill is dishonoured, Chintu reverses the earlier entry, and Ajay becomes liable for the entire amount due, i.e., ₹ 70,000 (the full settlement amount).

Information Booster:

• Bill of Exchange: A written unconditional order directing one person to pay another.
• Endorsement: Transfer of a bill by the holder to another party.
• Dishonour of Bill: When the drawee fails to make payment on due date.
• On dishonour, liability reverts to the drawer (Ajay).
• The debtor (Ajay) is debited for the total amount originally settled.