On 15th June, 2017, X sold to Y goods to the value of Rs. 15,000 drawing upon the latter two bills, one for Rs. 10,000 payable 2 months after date and other for Rs. 5,000 payable 3 months after date, X discounted the first bill with his bankers at 6% p.a. and endorsed the second bill in favour of his creditor, Z. The first bill was met on maturity but the second was dishonoured. Z paid Rs. 50 as noting charges. On 1st October, Y cleared his account to X by paying Rs. 5,100 which included Rs. 50 a s interest.
