Bill of Exchange Test

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Bill of Exchange Test - 36

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Weekly Quiz Competition

Question 1
1 / -0

A draws a bill on B for Rs. 6,000 for mutual accommodation in the ratio 2:1, A got it discounted Rs. 5,800 and remitted 1/3rd of the proceeds to B. At the time of maturity, how much amount A should remit to B so that B can pay off the bill?

A
Rs. 4,000

B
Rs. 3,867

C
Rs. 3,000

D
Rs. 3,010

Solution

A's remittance to B= Amount of bill x 2/3
= 6000 x 2/3
= Rs. 4000
Therefore, A is the correct option.
Question 2
1 / -0

Bills receivable discounted but not done till the date of final accounts is shown in ___________.

A
profit & loss account

B
assets

C
liabilities

D
notes to accounts
Question 3
1 / -0

A draws a bill on B for Rs. 60,000. A endorsed it to C in full settlement of Rs. 60,500. On due date, the bill was dishonored. Noting charge of Rs. 500 was paid. A wanted to pay the amount to C at 2% discount. The amount to be paid by A to C will be ___________.

A
Rs. 60,000

B
Rs. 60,500

C
Rs. 59,780

D
Rs. 61,000

Solution

After the bill being dishonoured, A will have to pay to C the amount already due along with the noting charges.
Amount payable by A to C before discount= Rs. (60500+500)
= Rs. 61000
Amount of discount= Rs. 61000x2/100= Rs. 1220
Amount payable by A to C after discount = Rs. 61000- 1220
= Rs. 59780
Therefore, C is the correct option.
Question 4
1 / -0

For mutual accommodation of A and B, B accepted a bill drawn on him by A for 2 months Rs. 12,000. The said bill is discounted at 12% p.a and remitted 1/3rd of the proceeds to B. The amount remitted by A to B will be _________.

A
Rs. 4,000

B
Rs. 3,920

C
Rs. 3,840

D
Rs. 3,800

Solution
Question 5
1 / -0

Which of the following statements is true?

A
A bill cannot be endorsed more than two times

B
A bill is drawn by purchaser

C
A bill contains an unconditional promise to pay

D
Noting charges are borne by the drawee in the event of dishonor of bill
Question 6
1 / -0

A bill from the point of view of a creditor is called ___________ .

A
bills payable

B
bills receivable

C
both of these

D
none of these
Question 7
1 / -0

When noting charges are paid at the time of dishonour of the bill, the drawee always debits ______________ account.

A
noting charges

B
interest

C
both (A) and (B)

D
None of the above

Solution

When bill of exchange is dishonoured then in order to prove this fact to drawer may get it noted and protested through a public official known as a notary public for which it charges its fees which called noting charges.such charges are recovered from the party responsible for the dishonour and when noting charges is paid at the dishonour of the bill the drawer always debit the noting charges account the journal entry is as :-

Bills payable A/c ......... Dr. xx
Noting charges A/c........Dr. xx
To Drawer's A/c...............Cr. xx
Question 8
1 / -0

A drew a bill on B for Rs. $$50,000$$ for $$3$$ months. Proceeds are to be shared equally. A got the bill discounted at $$12\%$$ p.a. and remits required proceeds to B. The amount of such remittance will be.

A
$$24,250$$

B
$$25,000$$

C
$$16,167$$

D
$$32,333$$

Solution
Question 9
1 / -0

Mr Bobby sold goods worth Rs. $$25,000$$ to Mr Bonny. Bonny immediately accepted a bill on $$1.11.01$$, payable after $$2$$ months. Bobby discounted this bill @ $$18\%$$ p.a. on $$15.11.01$$. On the due date Bonny failed to discharge the bill. Later on Bonny became insolvent and $$50$$ paise in a rupee is recovered from Bombay's estate. How much amount of bad debt will be recorded in the books of Bobby.

A
$$12,500$$

B
$$9,437$$

C
$$11,687$$

D
$$13,650$$
Question 10
1 / -0

Goods costing Rs. 4,00,000 were sent by A to B on consignment. 3/4 of the goods were sold by B at a profit of 20% on sale value. Commission payable to consignee is ordinary commission @ 3% and Del-credere commission @ 2%. A customer did not pay due to insolvency Rs. l,500 and another customer deducted Rs. 2,000 because of dispute regarding quality of.goods. Net amount of commission credited to profit and loss account in the books of consignee will be____.

A
Rs. 15,200

B
Rs. 16,500

C
Rs. 17,250

D
Rs. 16,750

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Re-Attempt Weekly Quiz Competition

Bill of Exchange Test - 36

Result

Bill of Exchange Test - 36

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Rank

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SHARING IS CARING

Question 1

Rs. 4,000

Rs. 3,867

Rs. 3,000

Rs. 3,010

Solution

Question 2

profit & loss account

assets

liabilities

notes to accounts

Question 3

Rs. 60,000

Rs. 60,500

Rs. 59,780

Rs. 61,000

Solution

Question 4

Rs. 4,000

Rs. 3,920

Rs. 3,840

Rs. 3,800

Solution

Question 5

A bill cannot be endorsed more than two times

A bill is drawn by purchaser

A bill contains an unconditional promise to pay

Noting charges are borne by the drawee in the event of dishonor of bill

Question 6

bills payable

bills receivable

both of these

none of these

Question 7

noting charges

interest

both (A) and (B)

None of the above

Solution

Question 8

$$24,250$$

$$25,000$$

$$16,167$$

$$32,333$$

Solution

Question 9

$$12,500$$

$$9,437$$

$$11,687$$

$$13,650$$

Question 10

Rs. 15,200

Rs. 16,500

Rs. 17,250

Rs. 16,750

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