CBSE Class 11 Accountancy Bills Of Exchange MCQs Set B

Question: A bill of exchange can not be
a) Endorsed
b) Accepted
c) Refused
d) Crossed
Answer: c

Question: What are the three additional days known as that a drawer gives to the drawee for payment
a) Conditional days
b) Additional days
c) Days of grace
d) Days of rebate
Answer: c

Question: A Bill of Exchange is renewed generally at the request of the
a) drawer
b) bank
c) drawee
d) None of the options
Answer: c

Question: A Promissory Note is made by the
a) seller
b) purchaser
c) endorsee
d) None of the options
Answer: b

Question: What is retiring a bill under rebate means?
a) Making a payment of the bill before the due date
b) Dishonouring of a bill
c) Making a payment of the bill after the due date
d) All of the options
Answer: a

Question: In case of renewal of the bill, interest is charged for the period of
a) Original Bill
b) Fresh Bill
c) One Month
d) None of the options
Answer: b

Question: A bill of exchange includes
a) An order to pay
b) A request to pay
c) A promise to pay
d) All of the options
Answer: a

Question: If a bill is accepted and the payment is made before the due date of maturity, the difference between the paid amount and the bill amount will be called as
a) Interest
b) Discount
c) Rebate
d) Commission
Answer: c

Question: Satish draws a bill on Ashish for a sum of Rs.10,000 payable after three months from the date of drawing of bill. Ashish gives his acceptance after adding a sentence "If my brother come back on due date". Satish claims that the bill has become invalid according to the Act.
a) It should be signed by maker
b) It should be unconditional
c) It should be in writing
d) It should contain a certain amount
Answer: b

Question: On 1-6-2020 Anukriti draws a bill on Anurag for Rs.25,000. At maturity the bill is dishonoured and Rs.100 is paid by Anukriti as noting charges. Anurag requests Anukriti to accept Rs.5,000 in cash and for the balance Anukriti draws a bill on Anurag for 2 months with interest @12% p.a. What will be the amount of Interest?
a) Rs.410
b) Rs.420
c) Rs.400
d) Rs.402
Answer: d

Question: A 4 months bill drawn on 1st January, 2019 will mature for payment on
a) 3rd May, 2019
b) 4th May, 2019
c) 5th May, 2019
d) 10th May, 2019
Answer: b

Question: What account will be credited when discounted bill is dishonoured?
a) Drawee's Account
b) Drawer's Account
c) Bank Account
d) Endorsee's Account
Answer: c

Question: Liability for a discounted bill is a
a) Contingent Liability
b) Fixed Liability
c) Current Liability
d) None of the options
Answer: a

Question: If the drawer is in need of money and cannot wait till due date and receive the money from bank is called?
a) Endorsement of bill
b) Discounting of bill
c) Retirement of bill
d) Dishonour of bill
Answer: b

Question: Parul accepted a bill for 90 days of Rs.10,000 drawn by Rahul on 10th February, 2010. On 18th March, 2010, Parul wished to retire the bill, Rahul offered rebate @12% p.a. Considering the year of 360 days rebate amount will be
a) Rs.184
b) Rs.150
c) Rs.190
d) None of the options
Answer: c

Question: When an acceptor refuses to pay the amount of bill to the holder of bill on its maturity is called?
a) Honoured bill
b) Dishonoured bill
c) Retired bill
d) Endorsed bill
Answer: b

Question: When a drawer discounts the bill, he gets?
a) More than face value
b) Less than face value
c) Equal to face value
d) None of the options
Answer: b

Question: Bill of Exchange has parties:
a) 6
b) 2
c) 3
d) 4
Answer: c

Question: On 13-07-2020 Withdraws a bill on Y for Rs.25,000 for 30 days. The due date of the bill will be:
a) 15th August, 2020
b) 14th August, 2020
c) 17th August, 2020
d) 16th August, 2020
Answer: b

Question: Which account will be debited in the books of acceptor at the time of discharge of a bill?
a) Bills Payable Account
b) Cash Account
c) Drawer's Account
d) Endorsee's Account
Answer: a

Question: Due date of a bill of exchange drawn on 30th January, 2011 for one month will be:
a) 5 Mar
b) 3 Mar
c) 29 Feb
d) 4 Mar
Answer: b

Question: While calculating the due date of the bill, how many days are added to the period of the bill:
a) 4 days
b) 3 days
c) 5 days
d) Neither of the options
Answer: b

Question: X drew a bill on Y for Rs.20,000 for 3 months on 1-1-2020. The bill was discounted with banker at a charge of Rs.100. At maturity the bill was returned dishonoured, the bank paid Rs.100 as Noting charges. The bank account will be credited, in the books of X, for dishonour with:
a) Rs.19,900
b) Rs.20,000
c) Rs.20,100
d) Rs.19,800
Answer: c

Question: Bill is drawn on 20th January, 2010 for 2 months. After sight date of acceptance is 29th January, 2010. The maturity date of bill will be:
a) 1 April, 2010
b) 23 March, 2010
c) 20 March, 2010
d) 29 March, 2010
Answer: a

Question: If due date of a bill falls on a public holiday, then the maturity date is on
a) one day after the maturity date
b) one day before the maturity date
c) Public holidays
d) None of the options
Answer: b

Question: If the due date of a bill falls on a public holiday then the bill is due on:
a) One day after the due date
b) Public Holiday
c) One day before the due date
d) None of the options
Answer: c

Question: A bill of exchange can not be
a) Endorsed
b) Accepted
c) Refused
d) Crossed
Answer: c

Question: What are the three additional days known as that a drawer gives to the drawee for payment
a) Conditional days
b) Additional days
c) Days of grace
d) Days of rebate
Answer: c

Question: Which account will be debited in the books of acceptor at the time of discharge of a bill?
a) Bills Payable Account
b) Cash Account
c) Drawer's Account
d) Endorsee's Account
Answer: a

Question: Due date of a bill of exchange drawn on 30th January, 2011 for one month will be:
a) 5 Mar
b) 3 Mar
c) 29 Feb
d) 4 Mar
Answer: b

Question: On 29th August, 2020, Mudit draws a bill on Paresh for one month, the due date will be .......
a) 2nd October, 2020
b) 29th September, 2020
c) 3rd October, 2020
d) 1st October, 2020
Answer: d

Question: Kamal draws a bill on Sahil for Rs.3000.Kamal endorsed it to Rohan. Rohan endorsed it to Rakesh.The payee of the bill will be
a) Kamal
b) Rakesh
c) Sahil
d) Rohan
Answer: b

Question: If the due date is public holiday what will be the due date of the bill
a) Preceding day
b) Following day
c) The same day
d) After two days
Answer: a

Question: The Bills Receivable Book is part of
a) the Journal
b) the Ledger
c) the profit
d) Balance Sheet
Answer: a

Question: A draws a bill on B for Rs.50,000 for 3 months. At maturity, the bill returned dishonored noting charges Rs.300. An amount of 40 paise in a rupee is recovered from B's estate. The amount of deficiency to record on insolvency in books of B will be:
a) Rs.20,200
b) Rs.30,300
c) Rs.19,800
d) Rs.19,000
Answer: b

Question: Mohon draws a bill on Shaym for Rs.50,000 for 3 months. Proceeds are to be shared equally. Mohon got the bill discounted @ 12% p.a. and remits required proceeds to Shaym. The amount of such remittance will be:
a) Rs.24,250
b) Rs.25,000
c) Rs.16,167
d) Rs.32,333
Answer: a

Question: Endorsement of Bill means, transfer of right on the bill from:
a) Drawee to the Creditors
b) Creditors to the Drawee
c) Drawer to the Creditors
d) Creditors to the Drawer
Answer: c

Question: Which account is to be credited when an endorsed cheque is dishonored?
a) Debtor
b) Bill Receivable
c) Endorsee
d) Payee
Answer: c

Question: If the bill is accepted and the amount is given before the due date (i.e. maturity), then the bill is said to be:
a) Cancelled
b) Accepted
c) Retired
d) Dishonour
Answer: c

Question: A Person who accepts the bill:
a) Drawer
b) Drawee / Acceptor
c) Promisor
d) Endorser
Answer: b

Question: What types of account is a Bill Payable A/c:
a) Personal A/c
b) Real A/c
c) Nominal A/c
d) Suspense A/c
Answer: a

Question: Interest on renewal of a bill is an expense to the?
a) Drawer
b) Endorsee
c) Endorser
d) Acceptor
Answer: d

Question: Which of the following is not true?
a) There is no difference in appearance between trade and accommodation bill
b) A bill of exchange must be accepted
c) Drawee is maker of a bill
d) Accommodation bill is for an imaginary transaction
Answer: c

Question: It is a period of time after which a bill becomes payable?
a) Grace days
b) Maturity
c) Usance
d) Tenor
Answer: d

Question: When a drawer discounts the bill, he gets?
a) More than face value
b) Less than face value
c) Equal to face value
d) None of the options
Answer: b

Question: For Time or Tenure bill What is the number of days added to the due date:
a) 2 Days
b) 3 Days
c) 5 Days
d) A Week
Answer: b

Question: The fee charged for getting the bill noted after dishonour is called:
a) Discounting Charges
b) Noting Charges
c) Interest
d) None of the options
Answer: b

Question: What do you mean by 'Term of Bill'?
a) Date of making the bill
b) Duration of the bill
c) The date on which the bill will lapse
d) Date of making the bill
Answer: b