ABC Company Ltd. deals in fast moving consumers goods. On 1st June, 2020, one of the Companys customer, Rainbow Cash & Carry, purchased merchandise worth Rs 2,500,000. Due to shortage of cash the M/S Rainbow Cash & Carry requested the ABC Company to accept Rs 500,000 cash and for the balance amount they will issue 90 days promissory note. After negotiation both the parties agreed for cash payment of Rs 500,000 and for balance amount a 90 days promissory note with 8% annual interest will be issued by the buyer. Required: in the light of foregoing please design promissory note for the Rainbow Cash & Carry clearly indicating the name of maker, the payee, the amount and date and other information.

b) Southern Engineering Co. manufactures and supplies telecom equipment. They are about to sign a contract with XYZ Telecom Co. for the supply of telecom equipment. During negotiation process the XYZ Telecom Company agrees to accept 90 days bill of exchange drawn on it by Southern Engineering Co. for the full value of equipment. The contract is signed on 1st February, 2019 and Southern Engineering Co. draws a 90 days bill of exchange on XYZ Co. for total value of Rs 5,000,000 which the XYZ Telecom Co. accepts by signing and putting official stamp on it. Required: i. Please design the bill of exchange in the light above information.

ii. Suppose Southern Engineering Co. gets the bill discounted from the bank on 10th February. The bank uses 12% discount rate. What amount shall the company receive from the bank after discounting?

c) Please give short answers to the following questions

. i. Ayesha wants to send a cheque amounting to Rs 10,000 to her friend Aroosa who is residing in Karachi. Advise her how to write the cheque so that it is secured and cannot be encashed by other person.

ii. Aslam purchased a motor cycle from his friend for Rs 30,000. Aslam does not have Rs 30,000 in his bank account on the date of purchase, but however his salary amounting to Rs 90,000 will be credited to his account on 1st September (i.e. after 15 days). Aslam wants to pay his friend through cheque and his friend wants to receive the cheque on the same day. How can he do this?