CBSE Class 11 Accountancy Bill of Exchange Assignment

CBSE Class 11 Accountancy Chapter 8 Bill of Exchange Fill In The Blanks

Question. In case the bill gets dishonoured………..a/c is debited.
Answer. Debtors

Question. If maturity date of bill is national holiday then due date will be ……
Answer. Previous working day

Question. If maturity date of bill is unforeseen holiday then maturity date will be……
Answer. Next working day

Question. Bills receivable account comes under …….Assets in balance sheet.
Answer. Current

Question. Drawers can……………the bill to get instant payment of bill.
Answer. Discount

Question. Bill is kept by drawer till maturity the payment will go to……...
Answer. Drawer

CBSE Class 11 Accountancy Chapter 8 Bill of Exchange True and False

1. When discounted bill is dishonoured debtor is debited in the book of drawer. True
2. If on maturity date of bill is national holiday then maturity date will be next working day.False
3. If maturity date of bill is unforeseen holiday then maturity date will be next working day.True
4. The holder allows some discount called noting charges. False
5. Single entry system is not approved by company’s Act 2013. True
6. Signing and transferring the bill is called endorsement of bill. True
7. Acceptor of bill is known as drawer. False
8. Maker is also known as Drawer. True
9. A liability to pay the noting charges is always associated with drawee. True

CBSE Class 11 Accountancy Chapter 8 Bill of Exchange MCQs

Question. Liability for a discounted bill is a
a. Contingent liability
b. Current liability
c. Non-current Liability
d. None of the Above
Answer. (A)

Question. A bill of exchange must be in
a. Writing
b. Orel
c. Registered
d. All of the above
Answer. (A)

Question. At the time of renewal of the bill interest is charged for the period of
a. Three month
b. Six Month
c. Original bill
d. Fresh bill
Answer. (D)

Question. When rebate on a Bill allowed
a. On Renewal of a bill
b. On Dishonour of a bill
c. On Retirement of a bill
d. On Endorsement of a bill
Answer. (C)

Question. The Bills Receivable book is part of
a. Journal
b. Ledger
c. Trial balance
d. Balance sheet
Answer. (A)

Question. The bills payable book is part of
a. Journal
b. Ledger
c. Trial balance
d. Balance sheet
Answer. (A)

Question. Noting charges Account is debited by
a. Drawer
b. Drawee
c. Payee
d. Notary public
Answer. (B)

CBSE Class 11 Accountancy Chapter 8 Bill of Exchange Match The Following

Question. Identify-  
i) Due date of a bill is calculated from            a) Term bill
the date of acceptance
ii) Due date of a bill is calculated from           b) Inland bill
the date of drawing the bill
                                                                        c) Bill after sight
                                                                        d) Bill after date
Answer. C & D

Question. Identify-
i) When bill is encashed before date of         a) Endorsement of bill
maturity is known as
ii) when bill is transferred to 3rd party           b) Dishonour of bill
before date of maturity is
                                                                     c) Discounting of bill
Answer. C & A

Question. Identify-
i) The lawyer performing the work           a) Notary Public
of noting the bill is called
ii) The Lawyer performing the work         b) Government
of noting the bill is
officially appointed by
                                                               c) Holder of the bill
                                                               d) Govt. Lawyer
Answer. A & B

Question. Identify-
i) The process of cancelling the         a) Renewal of bill
one bill & issuing a another bill
is known as
ii) The process of encashing the        b) Rebate of bill
one bill before the date of
maturity is known as
                                                          c) Discounted of Bill
Answer. A & B 

Question. Identify-
i) An order to make a payment is called          a) Promissory Note
ii) An promise to pay the payment is called     b) Bills of Exchange
                                                                       c) Neither A or B
Answer. B & A

Question.Match the due dates of bill of exchange
i) 1st March for two months     a) 3rd November
ii) 12th July for one month       b) 4th May
                                                c) 14th August
Answer. B & C

Question. What will be the correct journal entry?
i) If bill is retained by drawer till due date       a) Dr. Bank and Discounted a/c Cr. Bills receivable a/c
and realised on maturity
                                                                       b) Dr. Cash a/c and Cr. Bills Receivable a/c
                                                                       c) Dr. Bills payable a/c and Cr. Cash a/c
Answer. B

Question. Identify the correct discounting charges-
A bill of Rs. 15000 is drawn for 3 months and discounted by bank on same day –
i) @ 12% P.A       a) Rs. 2250
ii) @ 15%             b) Rs. 563
iii) @ 12%            c) Rs. 450
iv) @15% P.A.     d) Rs. 1800
Answer. C, A, D & B
 C & A

. Methods of preparing trial balance?

2. Define depreciation?

3. Explain internal users and external users of accounting information?

4. Explain debit note and credit note?

5. Prepare machinery account:

a. A company purchased machinery for Rs.50,000 on 01-07-1999. Another machinery costing Rs.10,000 was purchased on 01-09-2000. On 31-12-2001 machinery purchased in 1999 was sold at a loss of Rs.5,000. The company charges depreciation @15% on diminishing balance method. Accounts are closed on Dec. 31^st each year.

6. The following balances appears in the books of Kanthi & Sons;

01-01-2006 machinery account Rs.40,000

01-01-2006 provision for depreciation Rs.18,000

01-01-2006 they decided to sell a machinery for Rs.4,350. This machine was purchased in January 2002 for Rs.8,000. The firm has been charging depreciation @ 10% p.a. on straight line method. Prepare machinery account and provision for depreciation account on 31-12-2006.

7. Explain the meaning of following terms:

a. Drawings

b. Creditors

c. Debtors

d. Expenses

e. Expenditure

f. Revenues

g. Gains

h. Profits

i. Losses

j. Entity

k. Transaction

l. Goods

m. Purchases

n. Sales

o. Voucher

p. Discount

q. Liabilities

r. Assets

s. Stock

8. Prove that the accounting information tallies after each of the following transactions;

a. Started business with cash ₹ 1,00,000 building ₹ 50,000

b. Depreciation of building ₹ 2,000

c. Purchased goods ₹ 3,000 from Banu

d. Sold goods costing ₹ 1,000 for ₹ 1,500

e. Prepaid insurance ₹ 300

f. Outstanding salary ₹ 1,000

g. Interest on drawings ₹ 500

h. Interest on capital ₹ 200

i. Paid salary ₹ 2,000

9. Enter the following transactions in the cash book with cash & bank columns:

01-12-2010 Cash in hand 50,000 Cash at bank ₹ 25,000

02-12-2010 Paid to Rajan by cheque ₹ 500

03-12-2010 Received a cheque from Raju ₹ 3,000