Self Studies
Self Studies
Self Studies
Self Studies

Bill of Exchange Test - 35

Result Self Studies

Bill of Exchange Test - 35
  • Score

    -

    out of -
  • Rank

    -

    out of -
TIME Taken - -
Self Studies

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Self Studies Self Studies
Weekly Quiz Competition
  • Question 1
    1 / -0
    Under which circumstances drawer and payee is same person?
    Solution
     When drawer held the bill till maturity , the drawer and the payee is same person.
  • Question 2
    1 / -0
    A bill of exchange contains ___________.
    Solution
    According to  section $$5$$ of the Negotiable Instrument Act $$1881$$, a bill of exchange is an unconditional order in writing directing a certain person to pay certain person or the bearer a sum of money. As you can see in the proforma of a bill of exchange given above there is no promise of any kind, instead the drawer has just written that the drawee has to pay him an amount of $$RS.800$$ after two months.

  • Question 3
    1 / -0
    A promissory note contains ____________.
    Solution
    According to the provisions of  section $$4$$ of the Negotiable Instrument Act $$1881$$ a promissory note is an instrument in writing, containing an unconditional undertaking signed by the maker to pay a certain person a certain amount of money. An unconditional undertaking means a promise. Hence it can be said that a promissory note contains a promise. 

  • Question 4
    1 / -0
    The promissory note should be signed by _________.
    Solution
    A promissory note is an unconditional promise in writing made by one person to another signed by the promisor, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money, to, or to the order of, a specified person or to bearer.
    Therefore, D is the correct option.
  • Question 5
    1 / -0
    X draws a bill on Y for Rs$$10,000$$. X endorsed it to Z. Y will pay the amount of the bill on maturity to _______.
    Solution
    When a bill of exchange is endorsed by the maker/drawer in the favour of his creditor, such creditor becomes the payee of the bill and gets entitled to receive the amount on its maturity. In this case, Z becomes the payee after endorsement, and hence, Z will receive the amount of the bill from Y.
  • Question 6
    1 / -0
    On 1.1.05 X draws a bill on Y for Rs. 20,000 for 3 months. At maturity Y requests X to renew the bill for 2 months at 12% p.a interest. Amount of interest will be _________.
    Solution
    Calculation of Interest
    Interest = 20000 x (12/100) x (2/12)
                  = Rs. 400
    Therefore, A is the correct option.

  • Question 7
    1 / -0
    On 1.1.05 X draws a bill on Y for Rs. 30,000 for 3 months. At maturity Y requests X accepts Rs 10,000 in cash and for balance to draw a fresh bill for 2 months together with 12% p.a interest, Amount of interest will be ___________.
  • Question 8
    1 / -0
    On 1.6.05 X draws a bill on Y for Rs. 50,000. At maturity Y requested X to accept Rs. 10,000 and noting charges incurred Rs. 200 in cash and for the balance X draws a bill on Y for 2 months at 12% p.a. Interest amount will be _________.
  • Question 9
    1 / -0
    A draws an accommodation bill on B. The proceeds are to be shared by A and B in the ratio of 3:1. The amount of bill is Rs. 6,000, discounting charges Rs. 100. Discount borne by A will be ________.
    Solution
    When the proceeds of the bill of exchange are to be shared by A & B in ratio of 3 : 1, the discount expense incurred on discounting of the bill will also be incurred by them in the same ratio. Hence, A's share of discount will  be Rs. 75 (100 x 3/4).
  • Question 10
    1 / -0
    S draws 2 bills of exchange on 1.1.06 for Rs. 3,000 and Rs. 10,000 respectively . The bill of exchange for Rs. 3,000 is for 2 months, while the bill of exchange for Rs. 10,000 is for 3 months. These bills are accepted by K. On 4.3.06 K requests S to renew the first bill with interest at 18% p.a for a period of 2 months. S agrees to this proposal. On 20.3.06 K retires the acceptance for Rs. 10,000 the interest rebate, i.e., discount being Rs. 50.
    Before the due date of the renewed bill K becomes insolvent and only 60 paise in a rupee can be recovered from his estate. How much bed debt will be recorded in the books of S?
Self Studies
User
Question Analysis

  • Correct -

  • Wrong -

  • Skipped -

My Perfomance
  • Score

    -

    out of -
  • Rank

    -

    out of -
Re-Attempt Weekly Quiz Competition
Self Studies Get latest Exam Updates
& Study Material Alerts!
No, Thanks
Self Studies
Click on Allow to receive notifications
Allow Notification
Self Studies
Self Studies Self Studies
To enable notifications follow this 2 steps:
  • First Click on Secure Icon Self Studies
  • Second click on the toggle icon
Allow Notification
Get latest Exam Updates & FREE Study Material Alerts!
Self Studies ×
Open Now