Bill of Exchange Test

Result

Bill of Exchange Test - 20

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Weekly Quiz Competition

Question 1
1 / -0

When bill sent for collection is honor drawer passes __________journal entry.

A
Cash A/c Dr

To Bill Receivable A/c

B
Bill sent for collection A/c Dr

To Bill Receivable A/c

C
Bank A/c Dr

To bill sent for collection A/c

D
None
Question 2
1 / -0

Which of the following is not correct ?

A
A joint venture business has a definite life.

B
No cancellation entry is required when a bill is renewed.

C
The gain from side of capital assets need not be added to revenue to ascertain the net profit of a business.

D
If the amount is posted in the wrong account or it is written on the wrong side of an account, it is called error of commission.
Question 3
1 / -0

Bills sent for collection Rs 1000 dishonored and noting charges paid by drawer Rs 100 then, Cash A/c will be credited by Rs. _____________.

A
1000

B
1100

C
100

D
None

Solution

The following will be the entry for payment of noting charges by the drawer:

Noting Charges A/c Dr 100
To Cash A/c 100
(being bill sent for collection dishonored and noting charges paid by drawer)

In the above entry, cash a/c is credited by Rs. 100. Hence, C is the correct option.
Question 4
1 / -0

When part payment is received drawer debits ________ account.

A
drawee

B
cash

C
bill receivable

D
none
Question 5
1 / -0

Only ________ can retire the bill before due date.

A
drawer

B
bank

C
drawee

D
endorse
Question 6
1 / -0

Interest due in the books of drawer is ______________ drawee's account.

A
Debited

B
Credited

C
No entry

D
None
Question 7
1 / -0

__________ 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.

A
Retirement

B
Renewal

C
Discounting

D
Honoring
Question 8
1 / -0

When bill is cancelled Drawee passes Following Entry ______________.

A
Bill Payable A/c Dr

To Drawer A/c

B
Bill Payable A/c Dr

To Cash A/c

C
Drawer A/c Dr

To Bill Payable A/c

D
None
Question 9
1 / -0

When discounted bill is honored drawer passes ________journal entry.

A
No Entry

B
Cash A/c Dr

To Bill Receivable A/c

C
Cash A/c Dr

To Bank A/c

D
Drawee A/c Dr

To Bill Receivable A/c
Question 10
1 / -0

During renewal ________ are not considered as cancellation cost is mutually agreed between both the parties.

A
interest

B
payment

C
noting charges

D
none

User

Question Analysis

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Re-Attempt Weekly Quiz Competition

Bill of Exchange Test - 20

Result

Bill of Exchange Test - 20

Score

-

Rank

-

SHARING IS CARING

Question 1

Cash A/c DrTo Bill Receivable A/c

Bill sent for collection A/c DrTo Bill Receivable A/c

Bank A/c DrTo bill sent for collection A/c

None

Question 2

A joint venture business has a definite life.

No cancellation entry is required when a bill is renewed.

The gain from side of capital assets need not be added to revenue to ascertain the net profit of a business.

If the amount is posted in the wrong account or it is written on the wrong side of an account, it is called error of commission.

Question 3

1000

1100

100

None

Solution

Question 4

drawee

cash

bill receivable

none

Question 5

drawer

bank

drawee

endorse

Question 6

Debited

Credited

No entry

None

Question 7

Retirement

Renewal

Discounting

Honoring

Question 8

Bill Payable A/c DrTo Drawer A/c

Bill Payable A/c DrTo Cash A/c

Drawer A/c Dr To Bill Payable A/c

None

Question 9

No Entry

Cash A/c DrTo Bill Receivable A/c

Cash A/c DrTo Bank A/c

Drawee A/c DrTo Bill Receivable A/c

Question 10

interest

payment

noting charges

none

User

Question Analysis

My Perfomance

Score

-

Rank

-

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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

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

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