Accounting for Special Transactions – Bill Of Exchange and Promissory Notes 0 Accounting for Special Transactions - Bill Of Exchange and Promissory Notes 1 / 30 Q.30 If the bill is drawn on 14th may,89 and duration of a bill is 90 days, the due date of the bill will be _______. 16th July, 89 18th July, 89 17th July, 89 20th July, 89 2 / 30 Q.29 When a bill is dishonoured _______ is held responsible for noting charges. Drawer Drawee Endorsee Endorser 3 / 30 Q.28 When a bill is deposited for collection by the drawee in his bank is dishonoured, drawer has to credit _______ account. Retained Bank for collection Endorsee None 4 / 30 Q.27 A person who borrows money is called ___________. Debtor Creditor Drawer Payee 5 / 30 Q.26 Hundies are drawn in _______ languages. English Regional Foreign German 6 / 30 Q.25 Bill of exchange must be in _______. Writing Oral 7 / 30 Q.24 Three extra days, which are allowed over and above the period of the bill, are called _______ days Grace Extra Due None 8 / 30 Q.23 When a bill is paid in full on the due date it is called _______ bill Dishonouring Honouring Retirement Accepting 9 / 30 Q.22 The person to whom ownership of the bill is transferred is called __________. Endorser Endorsee Payee Drawer 10 / 30 Q.21 Bill of exchange contains an _______ order. Unconditional Conditional Written Oral 11 / 30 Q.20 When the bill is drawn and accepted creditor becomes a ________ and debtor becomes a _______. Drawee, Drawer Drawer, Drawee Buyer, Seller None 12 / 30 Q.19 __________ is a government officer. CEO Accountant Sales manager Notary public 13 / 30 Q.18 When drawee makes payment of the bill before its due date the bill is said to be _________ of bill. Dishonouring Honouring Retirement Accepting 14 / 30 Q.17 In a transaction of a credit sale, seller becomes a ______ and buyer becomes a _____. creditor, debtor debtor, creditor Debtor, Debtor Creditor, Creditor 15 / 30 Q.16 The date on which the payment of a bill is to be made is called _______. Due date Date of acceptance Graace days Extra days 16 / 30 Q.15 A bill of exchange must be signed by the ________. Drawer Drawee Debtor Payee 17 / 30 Q.14 If the bill falls due for payment on 26th January then the payment must be made on _________. 23rd Jan 25th Jan 24th Jan 26th Jan 18 / 30 Q.13 The person who transfers the ownership of the bill is called ________. Endorser Endorsee Drawer Payee 19 / 30 Q.12 A bill of exchange before acceptance is called ________. Bill Challan Draft all 20 / 30 Q.11 A bill drawn and accepted on 23rd November, 1996 for two month will be due from payment on _________. 25th Jan, 96 26th Jan, 96 24th Jan, 96 23th Jan, 96 21 / 30 Q.10 The person who prepares the bill is called __________. Drawee Drawer Payee Endorsee 22 / 30 Q.9 There are _________ parties to a bill exchange. 3 4 2 5 23 / 30 Q.8 A bill drawn and accepted on 12th June, 1995 for two months will be due for payment on _________. 14th Aug, 95 16th Aug, 95 15th Aug, 95 12th Aug, 95 24 / 30 Q.7 A bill of exchange is required to be _________ by the drawee. Endoresed Discounted Accepted Paid 25 / 30 Q.6 When Drawee accepts the bill, he becomes __________. Payee Acceptor Endorsee None 26 / 30 Q.5 A draws a bill on B for Rs.1,50,000 for 3 mts .At maturity ,the bill returned dishonoured,nothing charges Rs.1,500 .40 paise in a rupee is recovered from B's estate .the amount of deficiency to be recovered on insolvency in the books of B will be Rs.60,600 Rs.90,900 Rs.58,400 Rs.57,000 27 / 30 Q.4 the term of a bill after date commences from the date of acceptance of the bill from the date of drawing of the bill from the date of receipt of the accepted bill from the date of receipt of drawn bill 28 / 30 Q.3 Which of the following is true ? Noting charges is an expenses to be borne by drawer Noting charges is an expenses to be borne by drawee Noting charges is an expenses to be borne by payee Noting charges is an expenses to be borne by bank 29 / 30 Q.2 which of the following is correct for presenting bill to notary public To pay fees to notary public For 'bill for collection If the acceptor can approve that the bill was not properly presented to him for payment , he can escape the liability ,hence for dishonour it For drawing a fresh bill 30 / 30 Q.1 On the 1.06.05 X draws a bill on Y for Rs.25,000 , At maturity Y requested X to accept Rs.5,000 in cash and noting charges incurred Rs.100, and the balance X draws a bill on Y for 2 months at 12% p.a.Interest amount will be 410 420 440 400 Your score is LinkedIn Facebook Twitter VKontakte