Bills of Exchange-Test 2

A draws a bill for Rs.20,000 for 3 months on 1.1.09. Bill was discounted with a banker who charged Rs.100 as discounting charges. At maturity the bill returned dishonoured. With what amount will be bank A/c be credited in the books of A ?

When a bill is renewed, then entry will be :

If a machine is purchased for Rs.5,00,000 on 1st April, 2002 on hire purchase basis. What is the average due date, if amount is repaid in 5 yearly annual installments starting from 1st April, 2003.

A draws a bill for Rs.10,000 on B for 2 months. He gets it discounted from bank @ 12%. They agreed to share the proceeds equally.

How much amount is received by A ?

In case of sudden holiday, maturity date falls on :

A bill not paid by drawee on due date is called _____ .

Which of the following statements is not true ?

A draws bill of exchange on B for Rs.15,000 for 3 months on 12th May 2008. What will be the due date ?

Kumar draws a bill on Rajat for Rs.50,000 for mutual accommodation in the ratio of 3 : 2. Rajat accepted the bill. Kumar got it discounted for Rs.47,500. How much money should kumar remit to Rajat ?

Who is the acceptor of “Bill of Exchange” ?

“Bills payable discounted in cash by Creditor” will be shown in

Indian Currency is a

‘A’ draws a bill on ‘B’, but ‘B’ did not accept the same. Which of the following journal entry should be passed in the books of ‘A’.

A draws a bill on B for Rs.30,000. A wants to endorse it to C in settlement of Rs.35,000 at 2% discount with the help of B’s acceptance and balance in cash. How much cash A will pay to C ?

B drew a bill of Rs.10,000 for 2 months on A for mutual accommodation. It was decided that the proceeds will be shared equally amongst them. How much amount will be received by A if the bill was discounted @ 12% p.a. ?

“Liability on account of bills discounted with Bank” will be treated as :

If a bill is drawn on 1st Jan, and accepted on 8th Jan. What will be the due date of the bill if the term of the bill is 30 days after sight ?

If a cheque is dishonoured, then the entry will be passed in _______ .

Rahim draws a bills on Ram. Ram accepts the bill. Rahim endorse the bill to Salim. In books of Rahim which account is to be debited at the time of such endorsement ?

If a firm usually receives a number of promissory notes, it would be convenient to record the transaction in a separate book called ___ .

Liability for the bill discounted is a ______.

When the drawee becomes insolvent, the amount not ultimately paid to the drawer will be credited in the books of drawee to :

P sold goods to Q for Rs.2,00,000. Q paid cash Rs.60,000. P allowed 2% discount on balance and Q requested to draw a bill for the balance amount. The amount of the bill will be _______ .

Bill was drawn for Rs.10,000 on 12th May. Term of the Bill was three  months. The due date of the bill will be ______ .

‘Bills payable discounted in cash by creditor’. In the books of drawee this transaction will be recorded in :

When a bill of exchange is endorsed by the drawer to his creditor and is dishonoured by drawee at the time of maturity. What will be the journal entry in books of the drawer ?

A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs.48,500 to B. The total amount of the bill was :

A drew a bill on B. A endorsed this bill to C in settlement of his debt amounting to Rs.35,000 at 2% discount and paid Rs.5,000 in cash. What will be the amount of the bill drawn on B ?

In case of “Bill at Sight”, days of  grace are :

On 15/4/2011, Ram draws a bill on Shyam, Shyam accepts the same for 1 month and Ram endorses the bill to Vijay. What will be the entry regarding endorsement in the books of Shyam ?