CBSE Questions for Class 11 Commerce Accountancy Bill Of Exchange Quiz 5 - MCQExams.com

The term bill of exchange is defined in section _________ of the Negotiable Instruments Act.
  • $$3$$
  • $$5$$
  • $$4$$
  • $$10$$
The person who draws the cheque and signs on it is the ______.
  • drawer
  • drawee
  • payee
  • all of the above
Bill of exchange is an _________.
  • unconditional order to pay
  • unconditional undertaking to pay
  • conditional order to pay
  • conditional undertaking to pay
Bank on whom a cheque is drawn.
  • Drawer
  • Drawee
  • Payee
  • Endorsee
Bill of exchange is drawn by ________.
  • creditor
  • debtor
  • customer
  • any of the above 
How many parties are usually found in the case of a bill of exchange?
  • $$2$$
  • $$3$$
  • $$4$$
  • $$5$$
How many parties are there in a Promissory note?
  • $$5$$
  • $$4$$
  • $$3$$
  • $$2$$
How many days grace period is given for payment of a bill of exchange?
  • $$3$$
  • $$7$$
  • $$4$$
  • $$5$$
Drawee means a person who ___________.
  • makes the order
  • accepts it
  • payee
  • all of the above
Bill payable is drawn by __________.
  • creditor
  • supplier
  • debtor
  • none of the above
A promissory note is a/ an ________.
  • unconditional order to pay
  • unconditional undertaking to pay
  • conditional order to pay
  • conditional undertaking to pay
The term Promissory notes is defined in section _______ of the Negotiable Instruments Act.
  • $$3$$
  • $$4$$
  • $$6$$
  • $$8$$
Drawer means a person who ___________.
  • makes the order
  • accepts it
  • payee
  • all of the above
________ is not an essential requirement of a valid bill of exchange.
  • Acceptance
  • Consideration
  • Specific sum payable
  • Writing
Inland bills are those bills which are ________ or ________ in India.
  • Drawn, Payable
  • Accepted, Stamped
  • Stamped, Registered
  • None of the Above
Drawee of a bill of exchange is generally a ________.
  • creditor
  • debtor
  • both of the above
  • none of the above
Retirement of bill means __________.
  • making payment before the due date
  • cancellation of the bill
  • sending the bill for collection
  • endorsing the bill in favour of third party
A draws a bill of exchange of $$Rs. 2500$$ on B for $$4$$ months on $$2nd$$ February. The due date of the bill of exchange will be ___________.
  • $$2nd\ July$$
  • $$6th\ June$$
  • $$5th\ June$$
  • $$3rd\ June$$
On acceptance of bill - the drawee, debit which of these accounts?
  • Drawer's A/c.
  • Bills Receivable A/c.
  • Bills Payable A/c.
  • Endorse A/c.
Payee of a bill of exchange is a person __________.
  • to whom the bill of exchange is payable
  • who has accepted the bill of exchange
  • a person who draw the bill
  • to whom the bill is endorsed
A foreign bill is generally drawn in __________.
  • duplicate
  • triplicate
  • single copy
  • quadruplicate
Dishonour of a foreign bill requires protest if the law of the place ________ requires.
  • Where it is drawn
  • Where it is payable
  • Where it is accepted
  • Where the payee reside
Drawer of a bill of exchange is generally a _________.
  • creditor
  • debtor
  • both of the above
  • none of the above
Bill drawn and accepted for genuine trade transaction is called _________.
  • Trade Bill
  • Accommodation Bill
  • Genuine Bill
  • Commercial Bill
U/s $$12$$ of the negotiable instruments act, all the instruments which are not inland instruments are_______.
  • not valid in India
  • local instruments
  • foreign instruments
  • none of the above
X a resident of Japan draw a bill of exchange of $$Rs. 5000$$ upon Y payable in Mumbai. This is a ___________.
  • Inland bill
  • Inchoate bill
  • Foreign bill
  • Accommodation bill
When a bill endorsed is dishonoured, ________ a/c is credited by the drawee.
  • bills payable A/c
  • drawer
  • bank
  • bill dishonored A/c
Mr. X accepted a bill of exchange of $$Rs. 1500$$ drawn by Y and payable in $$3$$ months. He got it discounted from bank at $$2$$% discount. On the due date X failed to pay the bill as he was adjudged insolvent. A final dividend of $$0.25$$ in a rupee was received from his estate. Find the amount recovered from the estate of X.
  • $$300$$
  • $$360$$
  • $$375$$
  • $$400$$
R draws a bill of exchange on S for $$Rs. 8,000$$ for $$4$$ months. He got it discounted with a Bank at $$12$$% p.a. The net proceeds to be received from bank will be _______.
  • $$Rs. 7900$$
  • $$Rs. 7680$$
  • $$Rs. 8000$$
  • $$Rs. 7650$$
A draw a bill of exchange on $$B$$ for $$Rs. 3,000$$ for $$4$$ months. He got it discounted with a Bank at $$12$$% p.a. The discount charged by the bank will be _________.
  • $$Rs. 120$$
  • $$Rs. 360$$
  • $$Rs. 125$$
  • $$Rs. 154$$
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