Question

A bill was drawn on 14th April for ₹ 7,000 and was discounted on 6th July at 5% p.a. The Banker paid ₹ 6,930 for the bill. What is the legal due date

Answer 1

Face value (F.V.) = 7,000

Cash value (C.V.) = 6,930

Banker’s discount (B.D.) = F.V. – C.V.

= 7,000 – 6,930

= 70

Date of drawing bill = 14^th April

Date of discounting bill = 6^th July

We know that,

Banker’s discount = `("F.V." xx "n"/365 xx 5)/100`

∴ 70 = `(7,000 xx "n"/365 xx 5)/100`

∴ n = `(70 xx 100 xx 365)/(7,000 xx 5)`

∴ n = 73

To calculate period of bill, we have to calculate 73 days from date of bill discounting.

July	August	September	Total
25	31	17	73 days

∴ Legal due date = 17^th September