11th Grade > Accountancy
BILLS OF EXCHANGE MCQs
Total Questions : 30
| Page 3 of 3 pages
Answer: Option C. -> Bills sent for collection account
:
C
The drawer opens a temporary account in his books, when the bill is sent to the bank for collection. The name of the account is Bills sent for collection account.
:
C
The drawer opens a temporary account in his books, when the bill is sent to the bank for collection. The name of the account is Bills sent for collection account.
Answer: Option B. -> Retiring the bill
:
B
If the amount of a bill of exchange is paid before due date it is called Retiring the bill.
:
B
If the amount of a bill of exchange is paid before due date it is called Retiring the bill.
Answer: Option A. -> Drawer of the bill
:
A
Sometimes, the drawee shows his inability to pay the amount of bill before the date of maturity, in such cases, he requests the drawer to renew the bill.
:
A
Sometimes, the drawee shows his inability to pay the amount of bill before the date of maturity, in such cases, he requests the drawer to renew the bill.
Answer: Option A. -> Drawer
:
A
On discounting of a bill of exchange with the bank, the amount of discount is borne by Drawer.
:
A
On discounting of a bill of exchange with the bank, the amount of discount is borne by Drawer.
Answer: Option B. -> 3
:
B
The number of parties involved in bills of exchange are three namely drawer, drawee and payee.
:
B
The number of parties involved in bills of exchange are three namely drawer, drawee and payee.
Answer: Option A. -> Rs. 990
:
A
Journal entry in the books of B:
Bills Payable A/c Dr.
1,000
To Cash A/c
990
To Rebate on Bills A/c
10
:
A
Journal entry in the books of B:
Bills Payable A/c Dr.
1,000
To Cash A/c
990
To Rebate on Bills A/c
10
Answer: Option B. -> Drawee of the bill
:
B
Because of the inability of the drawee to pay the amount of bill he requests the drawer to substitute the old bill with a new one, this is called the renewal of the bill.
:
B
Because of the inability of the drawee to pay the amount of bill he requests the drawer to substitute the old bill with a new one, this is called the renewal of the bill.
Answer: Option A. -> Holder
:
A
In case of retirement, rebate is an expense for Holder.
:
A
In case of retirement, rebate is an expense for Holder.
Answer: Option C. -> 19th Nov
:
C
Due date will be 19th Nov as 18th Nov is sudden holiday. Therefore the maturity date will be suceeding date
:
C
Due date will be 19th Nov as 18th Nov is sudden holiday. Therefore the maturity date will be suceeding date
Answer: Option A. -> Taking the amount from bank against the bill before bill due date
:
A
Discounting of bill of exchange means encashing a bill of exchange before its due date.
:
A
Discounting of bill of exchange means encashing a bill of exchange before its due date.
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