Alex owed Leo $ 85,000. Alex draws a bill on leo for that amount for 3 months on 1st April. Leo accepts it and returns it to Alex. On 15th April, Alex discounts it with AMK Bank at a discount of 12% p.a On the due date the bill was dishonoured, the bank paid noting charges of $ 15. Alex settles the bank's claim along with noting charges in cash. Leo accepted another bill for 3 months for the amount due plus interest of $300 on 1st July.