Bills of Exchange-Test 8

The maker of a bill of exchange is called the _______

Bill of Exchange can be discounted with the ________.

________ is payable by the debtor to the creditor when a bill is renewed.

A Bill of exchange is called a ________  by one who is liable to pay it on the due date.

The posting from the Bill receivable Book are to the ____ of the accounts of individual debtors from whom bills have been received.

If a bill is endorsed by the drawer, he is called an _______.

When the bill is dishonoured __________ is held responsible for noting.

The _____ of a bill and the _______ of a promissory note are the persons primarily liable to the bill and the note respectively.

When a bill sought to be paid before its date of maturity, the holder allows _________ to the acceptor.

The person, other than the original creditor, to whom the amount in the bill is made payable is known as the ____ of the bill

Negotiable instruments can be easily transferred to the third party.

A bill is drawn by the creditor and acceptor by the debtor.

The drawee is required to make an entry only when the bill is accepted and natured.

Days of grace are added to date of maturity of bill to arrive at due date.

Bills of exchange needs acceptance.

Noting charges are considered as expenses by the party who makes the payment.

When the bill is dishonoured, the drawer will be debited in books of drawer whether the bill is retained, endorsed on discounted.

For Drawing an accommodation bill some valuable consideration must pass between the two parties.

When bill of exchange falls due on 2nd October, its payment will be made on 3rd October

When a bill is renewed, an entry for cancellation of the bill should be made.

Contingent liability is an ascertained liability but its amount and due date are determined.

All the entries from bills payable Journal are to be individually recorded in Bills payable A/c

The drawee and the payee of a bill exchange may be one and the same person

A promissory note can be made payable to bearer.

Days of grace are not allowed in case of Trade Bill.

If we add days of grace to date of maturity of bill, we get the due date.

Noting of dishonoured bill is compulsory.

A promissory note is nothing but an unconditional order in writing given by a debtor to a creditor.

The same person can be the drawer and payee in bills receivable.

Incase of dishonour of a bill, nothing charges are initially paid by the drawee.