CBSE Questions for Class 11 Commerce Accountancy Bill Of Exchange Quiz 4 - MCQExams.com

Bills sent for collection Rs 1000 dishonored and noting charges paid by drawer Rs 100 then, Cash A/c will be credited by Rs. _____________.
  • 1000
  • 1100
  • 100
  • None
At the time of retirement of a bill, the accounts to be credited are:
  • Bills Payable and Bank.
  • Bills Receivable and Bank.
  • Bank and Discount.
  • Bills Payable and Discount.
When part payment is received drawer debits ________ account.
  • drawee
  • cash
  • bill receivable
  • none
__________ of the bill occurs when drawee has funds at disposal and makes a request to drawer or holder to accept the payment before its due date.
  • Retirement
  • Renewal
  • Discounting
  • Honoring
Interest due in the books of drawer is ______________ drawee's account.
  • Debited
  • Credited
  • No entry
  • None
During renewal ________ are not considered as cancellation cost is mutually agreed between both the parties.
  • interest
  • payment
  • noting charges
  • none
Drawee Passes __________ journal entry for bill Retained , Discounted or Pledged.
  • Cash A/c Dr

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

    To Bill Receivable A/c
  • Bill Payable Dr

    To Drawer A/c
  • No Entry
During renewal of the bill the old bill is _____________ and fresh bill is accepted.
  • cancelled
  • dishonored
  • retired
  • none
When discounted bill is honored drawer passes ________journal entry.
  • No Entry
  • Cash A/c Dr

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

    To Bank A/c
  • Drawee A/c Dr

    To Bill Receivable A/c
When bill is cancelled Drawee passes Following Entry ______________.
  • Bill Payable A/c Dr

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

    To Cash A/c
  • Drawer A/c Dr

    To Bill Payable A/c
  • None
When drawee approaches the drawer for further extension of bill it is known as __________________.
  • Renewal of the bill
  • Retirement of the Bill
  • Drawing of the Bill
  • Dishonoring of the Bill
When bill sent for collection is honor drawer passes __________journal entry.
  • Cash A/c Dr

    To Bill Receivable A/c
  • Bill sent for collection A/c Dr

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

    To bill sent for collection A/c
  • None
A bill of exchange is drawn by the creditor.
  • True
  • False
When bill is retired , What will be the entry in the books of Drawee ?
  • Bill payable A/c Dr

    To Cash A/c

    To Discount A/c
  • Bill payable A/c Dr

    To Cash A/c

    To Rebate A/c
  • No Entry
  • None of the Above
Only ________ can retire the bill before due date.
  • drawer
  • bank
  • drawee
  • endorse
A bill of exchange must be accepted by the payee.
  • True
  • False
Which of the following statements is / are true?
  • Bill of exchange is a non-negotiable instrument
  • Bill of lading is a receipt issued by shipping company acknowledging receipt of goods
  • Marine insurance policy does not cover the loss / damage caused by delay
  • Both (A) and (B) above
  • Both (B) and (C) above
A bill of Rs. 5000 is being renewed for next 3 month with interest @ 12 % p.a
ascertain the Interest Amount __________.
  • 100
  • 175
  • 150
  • 155
A letter of credit is
  • A short-term credit by a bank to an importer
  • A guarantee to honour the bills of an exporter drawn within stipulated term
  • A guarantee by a bank to discount all the bills of an exporter
  • A short-term credit by the bank to an exporter against a confirmed order
  • Both (B) and (C) above
A confirmed letter of credit is one which 
  • Is availed by the importer's bank
  • Is guaranteed by a bank acceptable to the exporter
  • Is irrevocable
  • Is payable at sight
  • Has all the features
A bill of Rs.10000 Retired one month before due date @12% p.a , ascertain the rebate allowed ____________.
  • 100
  • 105
  • 110
  • 120
Discount allowed by the holder of the bill to encourage retirement is called _____.
  • discount
  • rebate
  • both
  • none
In a promissory note, the person who makes the promise to pay is called as Promisor.
  • True
  • False

Transfer of a negotiable instrument to another person by signing on it, is known as Endorsement.
  • True
  • False
A person who endorses the promissory note in favour of another is known as Endorser.
  • True
  • False
A bill of exchange is a negotiable Instrument.
  • True
  • False
A negotiable instrument does not require the signature of its maker.
  • True
  • False
The person to whom the amount mentioned in the promissory note is payable is known as promise.
  • True
  • False
Stamping of promissory note is not mandatory.
  • True
  • False
A bill of exchange is drawn for all cash transaction.
  • True
  • False
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers