Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Question
- This topic has 14 replies, 2 voices, and was last updated 3 weeks ago by MikeLittle.
- February 26, 2023 at 12:17 pm #679624
On 7 May, Adrienne entered into a contract to buy some goods fromBailey and has agreed to pay by international credit transfer. She usesthe National Bank of Caru (NBC) and Bailey uses the National Bank ofDentur (NBD).
Adrienne instructs NBC to initiate a payment order to NBD for thebenefit of Bailey on 4 June. NBC sends the appropriate paperwork to NBDon that date. NBD has an account at NBC. NBC credits that account withthe amount due to Bailey on 5 June. NBD transfers the money to Bailey’saccount at NBD on 6 June.
The credit transfer is accepted by NBD on:
A 7 May
B 4 June
C 5 June
D 6 JuneFebruary 26, 2023 at 1:34 pm #679626
Krrish, you have the answer in front of you! What is it about the printed solution that you don’t like?February 26, 2023 at 3:57 pm #679637
Sir my answer is 5 june
The given answer is 6 juneFebruary 26, 2023 at 4:31 pm #679639
OK, so now justify WHY you have selected June 5th!February 27, 2023 at 3:28 am #679662
The acceptance of payment order is given in an article ….based on thatFebruary 27, 2023 at 3:38 am #679663
Sir another sub question is
When credit transfer is completed
A 7 may
B 4 june
C 5 june
D 6 juneFebruary 27, 2023 at 3:39 am #679664
Now sir credit transfer is completed when the beneficiary bank accepts a payment order.
So here when he has accepted?February 27, 2023 at 8:42 am #679692
“The acceptance of payment order is given in an article”. What is it you are trying to say here – I’m sorry, but I really don’t understand your point 🙁February 27, 2023 at 8:44 am #679693
As to the subsidiary question, you’ve got my head spinning! I would appreciate it if you would very carefully check that you have fully and accurately transcribed the question.
My gut reaction is to say that the credit transaction is completed on 6th June but I would like confirmation of transcription accuracy.February 27, 2023 at 9:50 am #679697
Sir the subsidiary is exactly as written
And sir by articles i mean the un convention of international credit transfer
As i re understand the question i feel that the payment order is accepted by beneficiary bank on 6 june
What is the answer as per your point of view sir??February 27, 2023 at 1:14 pm #679708
Are we not now both in agreement and in agreement with the ‘official’ solution?February 27, 2023 at 1:59 pm #679711
Sir it means that in this case if it was an agreement between sender and receiving bank that the acceptance is indicated by the fact that payment order is received
Then the answer would be 4 juneFebruary 27, 2023 at 3:04 pm #679718
Krrish, do you mean 4 June?February 27, 2023 at 3:12 pm #679721
Yes sir but subject to the agreement between the sending bank and receinving bank
Which is certainly not in the question
Just in case it was such an agreementFebruary 27, 2023 at 3:20 pm #679725
So are you now satisfied?
- You must be logged in to reply to this topic.