Bills of Exchange-Test 3

When a bill is endorsed, credit is given to :

A bill of exchange is drawn by Mr. Mehesh on Mr.Mohan for Rs.10,000 on 30th January,2012 for one month. The due date of the bill would be :

A has discounted a 3 months bill @ 10% p.a. from Bank and given credit of Rs.11,700 and due date the bill was dishonoured and a notary charge of Rs.50 paid by the Bank. The amount by which the A’s account will be debited by the Bank.

Mr. X accepts a bill of Rs.5,000 drawn by Mr. Y for mutual accommodation. They decide to distribute the proceed in the ratio of 1 : 4. The bill was discounted for Rs.4,900. The amount of discount borne by Mr. Y would be :

Retirement of bill means

On 1st April Mr. A sold goods worth Rs.10,000 to Mr.B and drew a bill on him at 3 months for the amount Mr.B accepted the bill and returned it to Mr.A who discounted the bill with the Bank @ 15% p.a. The amount of discount to be charged as expense is :

Which of the following option (besides retaining the bill, till due date) are available to the holder for dealing with a Bill of Exchange ?

Which of the following statements are true with regard to Promissory notes ?

(i) It should be properly stamped.

(ii) The Promise to pay must be conditional

(iii) The payee must sign the promissory note

(iv) It should not be made payable to bearer

(v) The sum payable must be certain.

The correct alternative is :

Nutan draws a bill of exchange for Rs.20,000 on 1st Feb 2014, due for payment after 2 months on Divam. Divam accepts the bill of exchange on 4th March 2014, Divam retires the bill of exchange at a discount of 9% p.a. The Journal Entry at the time of retirement of the bill in the books of Divam will be :

The purpose of accommodation bill is :

In bill of exchange, the term of a ______ commences from the date of acceptance of the bill.

Which of the following is not an example of Foreign bill ?

Neelam sold goods to Dhiman for Rs.40,000 on 1.5.2014. On the same day, she drew on him a bill for the amount for 3 months, which Dhiman duly accepted. Neelam got the bill discounted with her bank. Before the due date, Dhiman became insolvent. Later, his estate could pay only 40% of the amount due.

What will be the amount of deficiency in the books of Dhiman ?

Bill at sight means the installment in the bill is payable at ______ .

A bill of exchange matures on 16th July. Suddenly a bank strike is declared on this date. Next day is Sunday. Bill will mature on :

Z Ltd. issued 4000 10% preference shares of Rs.100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 3000 equity shares of Rs.100 each at a premium of 20% per share. At the time of redemption of preference shares, the amount to be transferred by the company to the Capital Redemption Reserve Account will be :

Kiran sells goods for Rs.1,00,000 to Hari on 1st January, 2014 and on the same day draws a bill on Hari for 3 months for the amount. Hari accepts it and returns it to kiran, who discounts it on 4th January, 2014 with his bank at 10% p.a. The discounting charges are :

Noting charges is an Expense to be borne by :

On 12.05.2015, Axe draws a bill on Zed for Rs.25,000 for 3 months, maturity date of the bill will be :

A bill drawn and accepted for mutual help is known as ______ bill .

Mr. Sobby sold goods worth Rs.50,000 to Mr.Dobby. Dobby immediately accepted a bill on 1.02.2016 payable after 2 months. Sobby discounted the bill @ 18% p.a. on 15.02.2016. On the due date Dobby failed to discharge the bill. Later on Dobby becaome insolvent and 50 paise is recovered from Dobby estate. How much amount of bad debt will be recorded in the books of Sobby.

On 1.1.2016, X draws a bill on Y “for 30 days after sight”. the date of acceptance is 8.1.2016. The maturity date of the bill will be :

Bills of Exchange before acceptance is called as :

Mr. X accepts a bill of Rs.50,000 drawn by Mr.Y for mutual accommodation. they decide to distribute the proceed in the ratio of 1 : 4. The bill was discounted with the bankers for Rs.49,000.  The amount of discount borne by Mr. Y would be :

Jatin draws a bill on Lalit for Rs.60,000 for 3 months on 01.04.2016 which was accepted by Lalit on 2.4.2016. On 02.05.2016, Jatin got this bill discounted at 12% rate. The amount of discount will be :

A drew a bill on Bfor Rs.1,00,000 for 3 months. Proceeds are to be shared equally. A got the bill discouted at 15% and remits half proceeds to B. The amount of such remittance will be _______ .

A bill of Rs.40,000 was discounted by P with the banker for Rs.39,000. At maturity, the bill returned dishonoured, noting charges Rs.500. How much amount will the banker deduct from P’s bank balance for such dishonoured bill ?

From the following information, find out who can draw the bill if Mr A sold goods to B :

When the bill are to be produced to notary public :

Under which circumstance drawer and payee is same person :