Bills Of Exchange(11th Grade > Accountancy ) Questions and answers for exam Preparation

11th Grade > Accountancy

BILLS OF EXCHANGE MCQs

Total Questions : 30 | Page 2 of 3 pages

Question 11. On 1st April 2011, Rohan sold goods to Shyam for Rs. 30,000 on credit against his acceptance for 3 months. Rohan discounted the bill with his bank on 4th May 2011 @ 9% per annum. Find out the amount of discounting charges.

Rs. 400
Rs. 350
Rs. 300
Rs. 450

Discuss Question

Answer: Option D. -> Rs. 450
:
D
Discount
= Rs.

30, 000 * 9 % * \frac{2}{12}

= Rs. 450.

Question 12. Amount of noting charges is actual expense of ?

Drawee
Drawer
Banker
Endorsee

Discuss Question

Answer: Option A. -> Drawee
:
A
The drawee bears the noting charges.

Question 13. When is the bill to be produced to Notary Public?

At the time of drawing the bill
At the time of acceptance of the bill
At the time of dishonour of the dill
None of the above

Discuss Question

Answer: Option C. -> At the time of dishonour of the dill
:
C
The bill is produced to the notary at the time of dishonor of the bill.

Question 14. The parties to a bill of exchange are ?

Drawer, Drawee & Maker
Drawer, Drawee & Payee.
Payee, Drawee & Maker
Drawer. Maker & Payee

Discuss Question

Answer: Option B. -> Drawer, Drawee & Payee.
:
B
Drawer, Drawee & Payee.

Question 15. Due date of a bill of exchange drawn on 30th January, 2011 for one month will be :

29th Feb
1st March
2nd March
3rd March

Discuss Question

Answer: Option D. -> 3rd March
:
D
Due date of a bill of exchange drawn on 30th January, 2011 for one month will be 3rd March.

Question 16. At the time of endorsement, the drawer credits ?

Drawee`s account
The endorser`s personal accoount
Bills receivable account
None of the above

Discuss Question

Answer: Option C. -> Bills receivable account
:
C
The drawer credits the bills receivable account

Question 17. Fees paid in cash to Notary Pubilc is charged by :

Drawer
Drawee
Holder of the bill
None of the above

Discuss Question

Answer: Option C. -> Holder of the bill
:
C
Fees paid in cash to Notary Pubilc is charged by the holder of the bill.

Question 18. Under which circumstance drawer and payee will be the same person :

When drawer discounted the bill with banker
When drawer endorse the bill to the third party
When drawer held the bill till maturity
None of the above

Discuss Question

Answer: Option C. -> When drawer held the bill till maturity
:
C
When drawer held the bill till maturity.

Question 19. While calculating the due date of the bill, how many days are added to the period of the bill :

4
3
5
None of the above

Discuss Question

Answer: Option B. -> 3
:
B
3 Days are added.

Question 20. Discounting Charges =

Amount of Bill Discounted × Rate +Unexpired Period
Amount of Bill Discounted +Rate × Unexpired Period
Amount of Bill Discounted × Rate × Unexpired Period
None of these

Discuss Question

Answer: Option C. -> Amount of Bill Discounted × Rate × Unexpired Period
:
C
The 'discounting charges' of a bill depends on the rate of interest and the period of maturity.