Bills sent for collection Rs 1000 dishonored and noting charges paid by drawer Rs 100 then, Cash A/c will be credited by Rs. _____________.

1000

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1100

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100

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None

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Solution

The correct option is B 100
The following will be the entry for payment of noting charges by the drawer:

Noting Charges A/c Dr 100
To Cash A/c 100
(being bill sent for collection dishonored and noting charges paid by drawer)
In the above entry, cash a/c is credited by Rs. 100. Hence, C is the correct option.

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