CBSE Questions for Class 11 Commerce Accountancy Bill Of Exchange Quiz 1 - MCQExams.com

Which account is debited by a drawee of a bill of exchange on its endorsement?
  • Bills Payable
  • Bills Receivable
  • Drawer
  • None of the above
When bill is accepted by the acceptor ________.
  • Bill Payable A/c Dr

    To Drawer A/c
  • Bill Payable A/c Dr

    To Drawee A/c
  • Bill Receivable A/c Dr

    To Drawer A/c
  • None
Bills Receivable discounted but not due till the date of final account is shown in:
  • P & L A/c
  • Assets
  • Liabilities
  • Footnotes (contingent liabilities)
The person who draws the bill is known as  ____________ .
  • Drawer
  • Drawee
  • Endorser
  • Endorsee
Rebate on bills discounted is also called_____.
  • Unexpired discount
  • Earned discount
  • Expired discount
  • Received discount
A bill of exchange is drawn by a ________.
  • Creditor
  • Debtor
  • Shareholder
  • Debentureholder
A person who draws a bill of exchange is known as the ________.
  • drawee
  • drawer
  • payer
  • payee
When a loan will be NPA?
  • Interest and/ or loan instalments overdue for more than $$90$$ days
  • Accounts is out of order for more than $$90$$ days in case of overdraft/ cash credit
  • Bill remains overdue for more than $$90$$ days
  • All of the above
A person to whom the bill is endorsed is called _____________.
  • Seller
  • Buyer
  • Endorsee
  • Endorser
Bill of exchange drawn in any Indian language.
  • Bills of Exchange
  • Receipt
  • Memo
  • Hundies
Payment of bill before due date _________________.
  • Retirement of bill
  • Discounting of bill
  • Honouring of bill
  • Dishonour of bill
A person who endorses a bill.
  • Endorsee
  • Endorser
  • Drawer
  • Drawee
Encashment of bill before due date ________________.
  • Retirement of bill
  • Discounting of bill
  • Honouring of bill
  • Endorsing of bill
The true discount on a bill due $$9$$ months hence at $$16$$% per annum is $$Rs. 189$$. The amount of the bill is:
  • $$Rs. 1386$$
  • $$Rs. 1764$$
  • $$Rs. 1575$$
  • $$Rs. 2268$$
Rebate is calculated for __________ time before the due date.
  • unexpired
  • expired
  • future
  • none
If the drawee pay the bill before its maturity date it is called ___________.
  • retirement
  • pre-payment
  • postponement
  • dishonor
The party which is ordered to pay the amount is known as __________.
  • Payee
  • Drawer
  • Drawee
  • Endorsee
A person who endorses the cheque is known as endorser.
  • True
  • False
The period intervening between the date on which a bill is drawn and the date on which it becomes due for payment is called 
  • Due date
  • Term of Bill
  • Days of Grace.
  • Date of Maturity
Sum due or face value $$(A)$$ can be calculated by 
  • $$ A= \dfrac{\text{Banker's Discount} -\text{True Discount}}{\text{Banker's Discount}\times\text{True Discount}} $$
  • $$ A= \dfrac{\text{Banker's Discount} + \text{True Discount}}{\text{Banker's Discount}-\text{True Discount}} $$
  • $$ A= \dfrac{\text{Banker's Discount} - \text{True Discount}}{\text{Banker's Discount} + \text{True Discount}} $$
  • $$ A= \dfrac{\text{Banker's Discount} \times \text{True Discount}}{\text{Banker's Discount}-\text{True Discount}} $$
The rebate on a bill shows that it has been ____________.
  • paid before the date of maturity
  • paid after the date of maturity
  • been dishonoured
  • endorsed
To whom of the following, payment of the amount due on a promissory note, bill of exchange or cheque must be made in order to discharge the maker or accept or ________________.
  • Holder of the instrument
  • Indorser of the instrument
  • Indorsee of the instrument
  • None of the above
On 1.3.2006 X draws a bill on Y for 3 months for Rs20,On 4.5.2006, Y pays the bill to X at 12% discount. The amount of discount will be __________.
  • Rs. 200
  • Rs. 400
  • Rs. 600
  • Rs. 100
Which of the following statements is true?
  • Creditors can draw a bill on debtors
  • Debtors can draw a bill on creditors
  • Bank will draw a bill on customer at the time of overdraft
  • One can draw the bill on another under any circumstance.
Goods of the invoice value Rs. 2,40,000 sent out to consignee at 20% profit oncost. The loading amount will be:
  • Rs. 40,000
  • Rs. 48,000
  • Rs.50,000
  • None
At the time of renewal of a bill, interest account is in the books of the drawer. 
  • Credited
  • Debited
  • None of these
  • Both (a) and (b)
Everything mentioned below is required to make the endorsement complete EXCEPT:
  • The holder signs on the face or back of the instrument
  • The instrument is delivered to the endorsee
  • It is sighed and delivered with intention of vesting of the endorsee with the rights of the holder
  • It is sighed and delivered with intention of vesting the endorsee with the duties of the holder
If a bill is drawn on 28th January 1996 for 1 month, it will mature on _______________.
  • 1st March 1996
  • 2nd March 1996
  • 3rd March 1996
  • 31st March 1996
At the time of endorsement of a bill, the drawer credits:
  • The drawee
  • The endorsees personal account
  • Bills receivable account
  • either (A) or (B)
In case a cheque is dishonored than a drawer is liable to a punishment of
  • $$2$$ years imprisonment
  • The case is decided as per court
  • Fine which may exceed to twice the amount of the cheque
  • Both a & c
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers