Bill of Exchange Test

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Bill of Exchange Test - 34

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Weekly Quiz Competition

Question 1
1 / -0

When a Bill of Exchange is endorsed by the drawer in favour of third party, what entry is passed by the drawee of the bill of exchange

A
Dr Bills receivables and third partys A/c

B
Dr Bank a/c and credit BR a/c

C
No entry at all

D
Drawer a/c debit and credit third partys A/c
Question 2
1 / -0

At the time of drawing a bill, the drawer credits _____________.

A
debtor's A/c

B
creditor's A/c

C
bills receivable A/c

D
bills payable A/c

Solution

A bill of exchange is generally drawn by the creditor (drawer) upon his debtor (drawee). It has to be accepted by the drawee (debtor). The journal entry made by the drawer includes a debit to the ‘Bills Receivable A/c’ and a credit to the ‘Debtor’s A/c’
Question 3
1 / -0

Which of these is/are not actionable claim?

A
Bills receivables

B
Promissory note

C
Both

D
None
Question 4
1 / -0

Maternity Benefits (Amendment) Bill, 2016 provides _______ weeks of full paid maternity leave to women who work in organised sector.

A
12

B
26

C
24

D
32
Question 5
1 / -0

X sent some goods to Y to be sold on consignment basis. $$2/3$$rd of the goods costing Rs. $$70,000$$ were sold at Rs. $$90,000$$. Find the value of goods sent on consignment basis _________.

A
Rs. $$105,000$$

B
Rs. $$110,000$$

C
Rs. $$90,000$$

D
Rs. $$125,000$$
Question 6
1 / -0

Notary public may charge his fee from the __________.

A
drawer

B
drawee

C
holder of bill of exchange

D
none of the above
Question 7
1 / -0

A draws a bill on B for Rs$$5000$$. A endorsed it to C. C endorsed it to D. The payee of the bill will be ______.

A
A

B
C

C
B

D
D

Solution

Payee is a party to the bill of exchange. Payee is the person to whom the payment is to be made. The drawer of the bill himself will be the payee if he keeps the bill with him till the date of its payment. The payee may change in the following situations:
(a) In case the drawer has got the bill discounted, the person who has discounted the bill will become the payee.
(b) In case the bill is endorsed in favour of a creditor of the drawer, the creditor will become the payee.
In this case, D is the payee of the bill.
Therefore, D is the correct option.
Question 8
1 / -0

When the bill is to be produced to notary public at the time of ___________.

A
Drawing the bill

B
Acceptance of the bill

C
Dishonour of the bill

D
Bills for collection

Solution

If there is dishonour, or fear of dishonour, the bill will be given to a public official known as “Notary Public”. The amount of noting charges is recoverable from the party which is responsible for dishonour.
Question 9
1 / -0

Which of the following instruments is not a negotiable instrument?

A
Bearer cheque

B
Promissory note

C
Bill of exchange

D
Crossed cheque

Solution

When a cheque, crossed generally or specially, contains the words, “Not Negotiable” on the face of the cheque, then such a cheque loses it special characteristics of “negotiability”.
Question 10
1 / -0

Which of the following statements is true?

A
Noting charge is an expense to be borne by drawer

B
Noting charge is an expense to be borne by drawee

C
Noting charge is an expense to be borne by payee

D
Noting charge is an expense to be borne by bank.

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Re-Attempt Weekly Quiz Competition

Bill of Exchange Test - 34

Result

Bill of Exchange Test - 34

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SHARING IS CARING

Question 1

Dr Bills receivables and third partys A/c

Dr Bank a/c and credit BR a/c

No entry at all

Drawer a/c debit and credit third partys A/c

Question 2

debtor's A/c

creditor's A/c

bills receivable A/c

bills payable A/c

Solution

Question 3

Bills receivables

Promissory note

Both

None

Question 4

12

26

24

32

Question 5

Rs. $$105,000$$

Rs. $$110,000$$

Rs. $$90,000$$

Rs. $$125,000$$

Question 6

drawer

drawee

holder of bill of exchange

none of the above

Question 7

A

C

B

D

Solution

Question 8

Drawing the bill

Acceptance of the bill

Dishonour of the bill

Bills for collection

Solution

Question 9

Bearer cheque

Promissory note

Bill of exchange

Crossed cheque

Solution

Question 10

Noting charge is an expense to be borne by drawer

Noting charge is an expense to be borne by drawee

Noting charge is an expense to be borne by payee

Noting charge is an expense to be borne by bank.

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