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CBSE Questions for Class 11 Commerce Accountancy Bill Of Exchange Quiz 7 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Bill Of Exchange
Quiz 7
Average due date is also called ___________.
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0%
Zero date
0%
Equated date
0%
Cut off date
0%
Maturity date
Explanation
The average due date is known as the equated or mean date on which a payment is made in lieu of several payments that are due of several different dates without any kind of interest for both the parties that are involved.
Therefore, B is the correct option,.
Closing stock lying unsold with the consignee is valued at........
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0%
Cost price
0%
Market price
0%
Realizable price
0%
Least of cost or not realisable value
Explanation
The cost of unsold stock or closing stock should be valued at cost to the consignor plus proportionate non-recurring expenses incurred by the consignor and consignee. As usual, the unsold stock in the hands of the consignee should be valued on cost price or market price whichever is less.
Therefore, D is the correct answer.
Which of these is not an essential requirement of a valid promissory note?
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Acceptance
0%
Unconditional
0%
Maker and payee
0%
Specific sum
Explanation
Acceptance
is not an essential requirement of a valid promissory note. Hence, the correct option is A.
At the time of payment of a bill, the acceptor debits __________.
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0%
Bill receivables A/c
0%
Bills payable A/c
0%
Discount A/c
0%
One of these
On receipt of goods sent on consignment basis, the consignee..........
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0%
Debit consignment A/c
0%
Debit consignment stock A/c
0%
Stock A/c
0%
None of these
An unpaid seller can exercise the right of stoppage of goods in transit
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0%
Where he has parted with possession of the goods
0%
When the buyer has become insolvent
0%
Both
0%
None
Mohit Draw a Bill of Exchange of Rs. 30,000 payable in 3 months on Rohit. He got it discounted from the bank at a discount of 12% p.a. On due date the bill was returned dishonoured due to bankruptcy of Rohit and final dividend of Re.025 in a rupee was received from the estates of Rohit. Discounting charges on discounting of bill will be _______
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0%
Rs. 3600
0%
Rs. 900
0%
Rs. 600
0%
Rs. 400
Bill of exchanges drawn by two persons on each others for financial help are called.....
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0%
Accommodation bill
0%
Trade bills
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Mutual bills
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Bilateral bills
Explanation
A bill, draft, or note made, drawn, accepted, or endorsed by one person for another without consideration to enable that other to raise money or obtain credit thereby.
Therefore, A is the correct option.
A promises to pay B Rs. $$5,000$$, if India wins World Cup Cricket, $$2007$$. This is a ____________.
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0%
Wagering agreement
0%
Contingent contract
0%
Valid agreement
0%
Quasi contract
Explanation
Wagering agreements are those agreements entered into between parties under the condition that money is payable by the first party to the second party on the happening of a future uncertain event, and the second party to the first party when the event does not happen.
Hence A promises to pay B Rs. 5,000, if India wins World Cup Cricket, 2007, this is a wagering agreement.
So a is the correct answer.
which of these terms is/are not found in accounting of bill of exchange
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Forfeiture
0%
Renewal
0%
Discounting
0%
Noting
Explanation
Forfeiture is not part of bill of exchange as forfeiture of shares is referred to as the situation when the allotted shares are cancelled by the issuing company due to non-payment of the subscription amount as requested by the issuing company from the shareholder.
Hence a is the correct answer.
Excell Associates is a partnership firm, it intent to revalue its goodwill, average profits for the past five years are Rs 25000 p.a. Goodwill is being valued 3 years purchase of average profit. If D is admitted as third partner for 1/3 share of profit. How much D is required to bring in cash as his share of goodwill.
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0%
Rs 25000
0%
Rs 50000
0%
Rs 20000
0%
Rs 40000
Explanation
Value of Goodwill = Average profit x No. of purchases years
= Rs. 25000 x 3
= Rs. 75000
D's share in goodwill = Rs. 75000 x 1/3
= Rs. 25000
Therefore, A is the correct option.
Bill of exchange is defined in sections . of the Negotiable Instrument Act
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0%
5
0%
4
0%
10
0%
7
Explanation
According to section 5 of the Negotiable Instruments Act, 1881, a bill of exchange is defined as an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.
Therefore, A is the correct option.
Bills Receivables are initially recorded in..........
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Bills Recervable book
0%
Sales day book
0%
Purchase day book
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Purchase day book as a minus item
In consignment sale the persons sending the goods for further sale is known as ___________.
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0%
debtor
0%
consignee
0%
consignor
0%
supplier
Contingent liabilities includes ___________.
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0%
bills discounted before maturity
0%
guarantee undertaken
0%
cases pending in the court of law
0%
all the three
Explanation
A contingent liability is a liability that may or may not happen. This means there is uncertainty about recording such a liability in the financial accounts
Potential lawsuits, product warranties, and pending investigations are some examples of contingent liability.
Hence d is the correct answer.
At the time of receipt of payment of BR on the maturity date, the drawer of a bill exchange credits..........
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0%
Bill receivables A/c
0%
Bills payable A/c
0%
Drawee A/c
0%
None
In consignment sale, who send Proforma invoice?
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0%
Consignor
0%
Consignee
0%
Banker
0%
Customer
Explanation
Consignor, in a contract of carriage, is the person sending a shipment to be delivered whether by land, sea or air.
In a consignment sale, consignor sends a proforma invoice.
Hence, the correct answer is A.
Bills payables are initially recorded in
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0%
Bills payables book
0%
Sales day book
0%
Purchase day book
0%
Purchase day book as a minus item
Explanation
Bills payable are initially recorded in in the bill payable account.
It has a credit balance.
When we finalize the the account it will be shown in balance sheet as current liability.
Hence a is the correct answer.
X draw a bill of exchange on Y for Rs. 25,000 for 3 months on 10-10-What is the due date of this bill of exchange
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0%
13th Jan 14
0%
14th Jan 14
0%
15th Jan 14
0%
16th Jan 14
At the time of payment of a BP on the maturity date, the drawee of a bill of exchange debits
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0%
Bill receivables A/c
0%
Bills payable A/c
0%
Drawer A/c
0%
Cash A/c
Explanation
At the time of payment of a BP on the maturity date bills payable debits and credits cash.
Journal: Bills Payable a/c
To Cash a/c
( Being payment of a BP on the maturity date)
Hence b is the correct answer.
Discounting of a bill of exchange means..............
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0%
Encashing the same on the date of maturity from bank
0%
Endorsing it to creditor
0%
Sending it to bank for collection
0%
Encashing the same before the date of maturity from the bank
Explanation
Discounting of a bill of exchange is a method of short-term financing provided by banks. The bank purchases a trade bill from the payee before the maturity date and pays the bill amount after deducting service charges from it. At the maturity of the bill, the bank recovers the said money from the drawee.
Therefore, D is the correct option.
A bill of exchange is drawn by
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0%
Drawer
0%
Drawee
0%
Payee
0%
Endorsee
Explanation
Under the Negotiable Instruments Act, 1881,
a bill of exchange is drawn by the drawer. Hence, the correct option is A.
If a bill of exchange is returned dishonoured, the first thing the drawer to do is to?
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0%
Lodge a FIR
0%
Go to notary public for getting it noted
0%
Stop business dealing with the drawee
0%
All the three
A gets Bs signature on a document transferring Bs flat worth Rs. 30 lakhs to A for Rs. 5 lakhs on the threat of exposing Bs illicit relations. This agreement cannot be enforced because ..
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0%
Consideration is inadequate
0%
Free consent is not there
0%
Transfer of immovable property outside the scope of Contract Act
0%
Agreement not registered
When a BR is dishonoured, Bills receivable a/c is debited by.....
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0%
Face value of the bill
0%
Maturity value of the BR
0%
Maturity value plus interest
0%
Maturity value plus interest plus noting charges
If the act has been done before any promise is made, it is called ..
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0%
Present consideration
0%
Past consideration
0%
Future consideration
0%
Executory consideration
A accepted a bill of exchange promising to pay Rs. $$50,000$$ to B after $$3$$ months, B forged it for Rs. $$50,000$$ after two months. A is liable to pay ___________.
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0%
Rs. $$50,000$$ after two months
0%
Rs. $$50,000$$ after three months
0%
Nothing at all
0%
Rs. $$50,000$$ after two months
Explanation
When a bill of exchange is drawn then the drawee will pay the bill during the duration of the bill.
A accepted a bill of exchange promising to pay Rs. 50,000 to B after 3 months, B forged it for Rs. 50,000 after two months.
In this case, A is liable to pay (rs 50000) the bill amount after three months as the bill duration is 3 month
Hence b is the correct answer.
X consigned $$1,000$$ Kg of Apples costing Rs. $$100$$ per kg to Y. X incurred Rs. $$6,500$$ towards transportation and insurance. Y paid Rs. $$4,000$$ as godowns rent and Rs. $$500$$ as salesman Commission. He could not realize Rs. $$5,000$$ from a customer and the amount became bad debts. During road transportation $$50$$ kg were stolen. He sold $$900$$kg @ $$150$$ per kg. Y is entitled to $$2\%$$ del credere commission. Find the value of abnormal loss.
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0%
Rs. $$5,589$$
0%
Rs. $$5,325$$
0%
Rs. $$6,070$$
0%
Rs. $$5,890$$
A draws on B a bill of exchange for $$3$$ months of Rs. $$20,000$$ which B accepts. B got it discounted with a bank at $$16\%$$. On the due date B did not honour the bill and X got it attested from the notary public on paying noting charges of Rs. $$100$$. B paid Rs. $$6,000$$ in cash and requested A to draw a fresh bill for the balance amount for next three month at $$12\%$$ interest. The new bill will be for Rs. ____________.
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0%
Rs. $$14,723$$
0%
Rs. $$14,823$$
0%
Rs. $$14,523$$
0%
Rs. $$14,423$$
An offer may be revoked at any time .. communication of acceptance is complete as against . But not afterward
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0%
Before, acceptor
0%
After, acceptor
0%
Before, offeror
0%
After, offeror
Explanation
.
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