CBSE Questions for Class 11 Commerce Accountancy Bill Of Exchange Quiz 10 - MCQExams.com

If a bill is dishonoured, when presented for payment by third party, the drawer will debit:
  • Acceptors account
  • Third partys account
  • Neither of the two
  • None of the above
Following are the persons NOT involved in bill of exchange.
  • Maker
  • Holder
  • Payee
  • Drawee
A draws a bill on B for Rs. $$30,000$$. A wants to endorse it to C in settlement of Rs. $$35,000$$ at $$2\%$$ discount with the help of B's acceptance and balance in cash. How much cash A will pay to C?
  • $$4,300$$
  • $$4,000$$
  • $$4,100$$
  • $$5,000$$
Which of the following statements is true?
  • A bill cannot be endorsed more than two times
  • A bill is drawn by purchaser
  • A bill contains an unconditional promise to pay
  • Noting charges are borne by the drawee in the event of dishonor of bill
A bill from the point of view of a creditor is called  ___________ .
  • bills payable
  • bills receivable
  • both of these
  • none of these
Discount at the time of retirement of a Bill is a gain for the drawee.
  • True
  • False
When noting charges are paid at the time of dishonour of the bill, the drawee always debits ______________ account. 
  • noting charges
  • interest
  • both (A) and (B)
  • None of the above
A bill of exchange contains a/an _________________.
  • Unconditional undertaking
  • Unconditional order
  • Conditional undertaking
  • Conditional order
No cancellation entry is required when a bill is renewed.
  • True
  • False
A bill of exchange is a conditional order in writing given by a Debtor to a Creditor.
  • True
  • False
Goods costing Rs. 4,00,000 were sent by A to B on consignment. 3/4 of the goods were sold by B at a profit of 20% on sale value. Commission payable to consignee is ordinary commission @ 3% and Del-credere commission @ 2%. A customer did not pay due to insolvency Rs. l,500 and another customer deducted Rs. 2,000 because of dispute regarding quality of.goods. Net amount of commission credited to profit and loss account in the books of consignee will be____.
  • Rs. 15,200
  • Rs. 16,500
  • Rs. 17,250
  • Rs. 16,750
A promissory note can be made payable to bearer.
  • True
  • False
At the time of retirement of a bill, the acceptor debits _____________.
  • Creditors Account
  • Bank Account
  • Discount Account
  • Bills Payable Account
The undertaking contained in a promissory note, to pay a certain sum of money is _________________.
  • Conditional
  • Unconditional
  • May be conditional or unconditional depending upon the circumstances
  • None of the above
Under section 118 of the Negotiable Instruments Act, 1881 it is presumed, until the contrary is proved, that every transfer of negotiable instrument was made ___________________.
  • After its maturity
  • Before its maturity
  • At its maturity
  • None of the above
Mr. Amit signs on instrument in the following terms.
(i) " I promise to pay B or order Rs $$500$$"
(ii) " I promise to pay B Rs$$500$$, first deducting all other sums which shall be due to him."
(iii) " I promise to pay B Rs$$500$$ on D's death, provided D leaves one enough to pay that sum"
Which of the following are promissory notes?
  • Only (i)
  • Both (i) & (ii)
  • Both (ii) & (iii)
  • All of the above
State whether the following statement is True or False.
The inland bill which is drawn and payable in the same country.
  • True
  • False
If an instrument may be constructed either as a promissory note or bill of exchange, it is ________________.
  • A valid instrument
  • An ambiguous instrument
  • A returnable instrument
  • None of the above
Every promises and set of promises forming the consideration for each other is an
  • Agreement
  • Contract
  • Cross officer
  • Acceptance
The term 'Negotiable Instrument' is defined in the Negotiable Instruments Act, 1881 under section __________.
  • 12
  • 13
  • 13(1)
  • None of the above
A negotiable instrument dated the $$31st\ August, 2019$$, is made payable $$3$$ months after date. The instrument is at maturity on ________.
  • $$30th\ August, 2019$$
  • $$3rd\ December, 2019$$
  • $$1st\ December, 2019$$
  • $$31st\ December, 2019$$
$$X$$ draws a bill on $$Y$$ for $$Rs. 2,50,000$$ on $$1.1.2018$$ for $$3$$ months after sight, date of acceptance is $$6.1.2018$$. Maturity date of the bill will be : __________.
  • $$8.4.2018$$
  • $$9.4.2018$$
  • $$10.4.2018$$
  • $$11.4.2018$$
$$X$$ draws a bill on $$Y$$ for $$Rs. 30,000$$ on $$1.1.X$$ accepts the same on $$4.1.2019$$ for period of $$3$$ months after date. What will be the maturity date of the bill : __________.
  • $$4.4.2019$$
  • $$3.4.2019$$
  • $$7.4.2019$$
  • $$8.4.2019$$
X sent out 4,000 boxes costing 100 each with the instruction that sales are to be made at cost +45%. X drew a bill on Y for an amount equivalent to 60% of sales value. The amount of bill will be:
  • Rs. 3,48,000
  • Rs. 4,00,000
  • Rs. 5,80,000
  • Rs. 2,40,000
If an instrument be negotiated by means of a forged endorsement, the endorsee acquires no title even though he be a purchaser for value and in good faith, for the endorsement is a nullity.
  • True
  • False
  • Partly true
  • None of above
Noting is necessary in case of __________ of bill.
  • Transfer
  • Assignment
  • Endorsement
  • Dishonour
If Mr. Z draws the bill of exchange for Rs $$75,000$$ on Mr. N. This transaction will be recorded by Mr.Z in ________and by Mr. N in ________.
  • Bills Receivable Book, Bills Payable Book
  • Bills Payable Book, Bills Receivable Book
  • Bills Receivable Book, Purchases Book
  • Bills Payable Book, Sales Book
On $$1.1.2018, X$$ draws a bill on $$Y$$ for $$Rs. 20,000$$ for $$3$$ months maturity date of the bill will be ________.
  • $$1.4.2019$$
  • $$3.4.2019$$
  • $$4.4.2019$$
  • $$4.5.2019$$
On $$18.2.2019$$ A draws a bill on $$B$$ for $$Rs. 1,25,000$$. $$B$$ accepted the bill on $$21.2.2019$$. The bill is drawn for $$30$$ days after sight. The maturity date of the bill will be : ________.
  • $$24.3.2019$$
  • $$23.3.2019$$
  • $$26.3.2019$$
  • $$21.3.2019$$
On $$15.8.2018, X$$ draws a bill on $$Y$$ for $$3$$ months for $$Rs. 2,18th\ Nov$$. was a sudden holiday, maturity date of the bill will be: _______.
  • $$17th\ Nov.$$
  • $$18th\ Nov.$$
  • $$19th\ Nov.$$
  • $$15th\ Nov.$$
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