Test Paper – Chapter VII–Bills of exchange
1. In case of discount of bill with Bank, debit goes to?
A. Cash a/c
B. Bills receivable a/c
C. Discount a/c
D. A and C
2. A bill of exchange is prepared by?
A. Drawee
B. Payee
C. Banker
D. Drawer
3. A bill of exchange is accepted by?
A. Drawee
B. Payee
C. Banker
D. Drawer
4. The person to whom payment should be done is?
A. Drawee
B. Payee
C. Banker
D. Drawer
5. The foreign bill is generally drawn in?
A. Single
B. Duplicate
C. Triplicate
D. None of the above
6. A bill drawn in on a person resident in India and made payable in outside India, is called?
A. Inland bill
B. Foreign bill
C. Both of the above
D. None of the above
7. Which of the following is true in case of Promissory note?
A. I promise to pay Rs.1000 plus all fine
B. I promise to pay Rs.1000 minus all fine
C. I promise to pay Rs.1000 as soon as I can
D. I promise to pay Rs.1000
8. Bill of exchange is asset to whom?
A. Drawee
B. Payee
C. Banker
D. Drawer
9. Bill of exchange is liability to whom?
A. Drawee
B. Payee
C. Banker
D. Drawer
10. When bill is drawn after sight, the term of the bill begins from the date of?
A. Date of bill drawn
B. Date of acceptance
C. A or B
D. None of the above
11. When bill is drawn after date, the term of the bill begins from the date of?
A. Date of bill drawn
B. Date of acceptance
C. A or B
D. None of the above
12. Which of the bill is not eligible for “days of grace “?
A. A bill payable on demand
B. Bills at sight
C. Bills after sight
D. A and B
13. Maturity date of the bill means?
A. Due date of bill
B. Due date of the bill minus three days
C. Due date of the bill plus three days
D. Public holiday
14. Bill after date is expressed to be payable?
A. After a specified period
B. On a specific event
C. After sight
D. All of the above
15. Which of the following is not a negotiable instrument
E. Bearer cheque
F. Promissory note
G. Bills of exchange
H. Account payee crossed cheque
16. When bill dishonor and was originally with third party, debit goes to?
A. Third party
B. Drawee
C. Drawer
D. Bill receivable a/c
17. If the due date is public holiday, what will be actual due date of the bill?
A. Following day
B. Preceding day
C. The same day only
D. One month later
18. If the due date is emergency holiday, what will be actual due date of the bill?
A. Following day
B. Preceding day
C. The same day only
D. One month later
19. Term of the original bill was 3 months. Due date of the original bill is 8th Nov-2014 and amount due is Rs.6000. Drawee retired the bill on 8th October -2014? Rate of interest is 10%, Calculate rebate on bills?
A. Rs.600
B. Rs.100
C. Rs.50
D. Rs.150
20. In case of insolvency of Drawee, the amount unrecoverable should goes to?
A. Bills receivable
B. Bad debts
C. Cash
D. Debtors
21. On 15.08.2014, X draws a bill on Y for 3 months for Rs.10, 000.15th Nov is public holiday and 18th Nov is declared as an emergency holiday. The Maturity date will be?
A. 14th Nov
B. 15th Nov
C. 18th Nov
D. 19th Nov
22. On 30.11.2014, X draws a bill on Y for 3 months for Rs.15, 000. The Maturity date will be?
A. 28th Feb-2015
B. 3rd March-2015
C. 30th Feb-2015
D. 4th March -2015
23. X draws a bill on 25.11.2014 on Y for 3 months after date for Rs.10, 000. The bill was accepted by Y on 05.12.2014.The Maturity date will be?
A. 28th Feb-2015
B. 25th Feb-2015
C. 5th March-2015
D. 8th March-2015
24. X draws a bill on 25.11.2014 on Y for 3 months after sight for Rs.10, 000. The bill was accepted by Y on 05.12.2014.The Maturity date will be?
A. 28th Feb-2015
B. 25th Feb-2015
C. 5th March-2015
D. 8th March-2015
25. X draws a bill on 15.10.2014 on Y for 3 months after date for Rs.10, 000.On maturity date Y renewed the bill for 40 days. The Maturity date of the renewed bill will be?
A. 18th Jan-2015
B. 15th Jan-2015
C. 26th Feb-2015
D. 23th Feb-2015
26. X draws a bill on 15.10.2014 on Y for 3 months after date for Rs.10, 000.On maturity date Y dishonored the bill. Rs.200 as noting charges. The bill was originally endorsed to Z. Amount should be credited to Z account?
A. Rs.10000
B. Rs.200
C. Rs.10200
D. Rs.9800
27. X draws a bill on 15.10.2014 on Y for 3 months after date for Rs.10, 000.On maturity date Y dishonored the bill. Rs.200 as noting charges. The bill was originally discounted with bank. Credit goes to which account?
A. Y a/c
B. X a/c
C. Bank a/c
D. Notary public
28. Term of the original bill was 3 months. Due date of the original bill is 4th Dec-2014 and amount due is Rs.16000.On the said date Drawee renewed the bill for next 45 days for the same amount. Rate of interest is 10%.Interest to be payable by Drawee?
A. Rs.1600
B. Rs.197
C. Rs.400
D. Rs.200
29. Which of the following is not made payable to the bearer of the instrument?
A. Bills of exchange
B. Promissory note
C. Bills after sight
D. Bills at sight
30. Type of the bill used for raising finance called?
A. Bills payable
B. Bills receivable
C. Accommodation bill
D. Promissory note