Question

A draws a bill on B for Rs. 4,500 for mutual accommodation in the ratio 2:1. A got it discounted at Rs. 4,230 and remitted 1/3rd of the proceeds to B. At the time of maturity, how much amount A should remit to B such that B can pay off bill?

• A. Rs. 3,000
• B. Rs. 2,880
• C. Rs. 2,920
• D. None of the above

Answer 1

The correct option is A

Rs. 3,000

A should pay Rs. 4,500 $\ast \frac{2}{3}$ = Rs. 3,000.