Ram had borrowed certain sum of Rs.1,20,000/- from Shyam for which he had executed some documents. One of the documents prepared by Ram stated that "Received Rs.1,20,000/- from Mr. Shyam as a loan to be paid back fully by December 31, 2022, with an interest of 18% p.a." Answer the following questions: 1. Whether this was a Promissory Note? 2. If yes, why? If no, why? 3. What are the essentials of a Promissory Note?

Ram had borrowed certain sum of Rs.1,20,000/- from Shyam for which he had executed some documents. One of the documents prepared by Ram stated that "Received Rs.1,20,000/- from Mr. Shyam as a loan to be paid back fully by December 31, 2022, with an interest of 18% p.a." Answer the following questions: 1. Whether this was a Promissory Note? 2. If yes, why? If no, why? 3. What are the essentials of a Promissory Note?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Dog
3. Mr. Econ borrowed money from the bank last January 16, 2005. He receives from the bank P 440,000.00 and promised to pay P 500,000.00 on October 12, 2005. Compute: (a) Simple interest rate; and (b) Discount Rate.
Galubhai
Lenvil Miller owed $2,501.61 to the Star Bank of Cincinnati. Star Bank referred collection of Miller’s account to Payco-General American Credits, Inc. (Payco), a debt collection agency. Payco sent Miller a collection form. Across the top of the form was the caption “DEMAND FOR PAYMENT” in large, red, boldface type. The middle of the page stated “THIS IS A DEMAND FOR IMMEDIATE FULL PAYMENT OF YOUR DEBT,” also in large, red, boldface type. That statement was followed in bold by “YOUR SERIOUSLY PAST DUE ACCOUNT HAS BEEN GIVEN TO US FOR IMMEDIATE ACTION. YOU HAVE HAD AMPLE TIME TO PAY YOUR DEBT, BUT YOU HAVE NOT. IF THERE IS A VALID REASON, PHONE US AT [ ... ] TODAY. IF NOT, PAY US—NOW.” The word “NOW” covered the bottom third of the form. At the very bottom in the smallest type to appear on the form was the statement, “NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION.” The notice was printed in white against a red background. On the reverse side were four paragraphs in gray ink. The…
State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.a. A note for $2,000 payable in twenty monthly installments of $100 each that provides the following: “In case of death of maker, all payments not due at date of death are canceled.”b. A note stating “This note is secured by a mortgage on personal property located at 351 Maple Street, Smithton, Illinois.”c. A certificate of deposit reciting “June 6, 2014, John Jones has deposited in the Citizens Bank of Emanon, Illinois, Two Thousand Dollars, to the credit of himself, payable upon the return of this instrument properly indorsed, with interest at the rate of 6 percent per annum from date of issue upon ninety days’ written notice. (Signed) Jill Crystal, President, Citizens Bank of Emanon.”d. An instrument reciting “I.O.U., Mark Noble, $1,000.00.”e. A note stating…
I also wanna ask the correct solution for this problem although I already solve it. Just wanna make sure my answers are correct:))
I can purchase a 1-year Certificate of Deposit at a bank. The bank uses that deposit money to fund a 30-year mortgage loan. This is an example of (2 words)
what will be the journel entry to record the issue of note of $30,000 to a creditor wo has agreed to pay the amount on the specified terms as per the note agreement
A man borrowed a sum of money from a lending Institution at a simple interest rate of 12%. Determine the present and future amount of the money borrowed from January 10, 2006 to October 15, 2006 if the accrued ordinary and exact Interests are ₱6,476.71 and ₱6,566.67, respectively.
Blue Corporation borrowed $62,000 on November 1, 2025, by signing a $63,395, 3-month, zero-interest-bearing note. Prepare Blue's November 1, 2025, entry; the December 31, 2025, annual adjusting entry; and the February 1, 2026, entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
On January 1, 2023, Karen Hong lent $64612 to Ben Bachu. A zero-interest-bearing note (face amount, $86000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2025. The market rate of interest for a loan of this type is 10%. To the nearest dollar, and using the effective interest method, how much interest revenue should Ms. Hong recognize in 2023? $19383 $6461 $25800 ○ $8600
Khamis deposited RO. 12,000 each in two different banks ,bank A and bank B at a rate of 3.1 % per annum for (55+1) years. If Bank A follows simple interest method and Bank B follows compound interest method, calculate and compare the simple interest and the compound interest that Khamis receives on his deposits. please solve manually