Question

At the time of dissolution of a partnership firm on 31^st March 2024, its Bills Payable of ₹ 42,000 due to be paid on 31^st July 2024, was settled at a rebate of ₹ 350.

Calculate the per annum percentage of rebate at which the Bills Payable was settled.

Answer 1

Rebate

`= "Amount" xx "Time outstanding" xx "Rate of rebate"/100`

`350 = 42000 xx 4/12 xx "rate of rebate"/100`

Rate of rebate = `(350xx12xx100)/(42000xx4)`

= 2.5%