Q.1
When a drawer discounts the bill, he gets?
  • Less than face value
  • More than face value
  • Equal to face value
  • None of above
Q.2
When the drawee signs the bill, it is considered as
  • Accepted
  • Endorsed
  • Retired
  • Renewed
Q.3
The Bills Receivable book is part of
  • Journal
  • Ledger
  • Trial balance
  • Balance sheet
Q.4
A draws a bill on B for ₹ 30,A wants to endorse it to C in settlement of ₹35,atdiscount with the help of B’s acceptance and balance in cash. How much cash A will pay to C?
  • (a) ₹ 4,300
  • (b) ₹4,000
  • (c) ₹ 4,100
  • (d) ₹ 5,000
Q.5
If Mohan’s acceptance which was endorsed to Mrs Jivika is dishonoured then the amount will be Credited in our books
  • a. Mohan
  • b. Jivika
  • c. Bills Receivable account
  • d. None of the above
Q.6
Due date of a bill of exchange drawn on 30th January,for one month will be :
  • 5 March
  • 3 March
  • 29 Feb
  • 4 Mar
Q.7
When an acceptor refuses to pay the amount of bill to the holder of bill on its maturity is called?
  • Honored bill
  • Dishonored bill
  • Retired bill
  • Endorsed bill
Q.8
How many parties are involved in case of discounting of bill?
  • Two
  • Three
  • Four
  • None
Q.9
If Pankaj’s acceptance which was discounted from bank is dishonoured then the amount will be debited in our books
  • a. Pankaj
  • b. Bank
  • c. Bills Receivable account
  • d. None of the above
Q.10
If a firm usually receives a number of promissory / notes, it would be convenient to record the transaction in a separate book called .............. .
  • (a) Bills receivable Book
  • (b) Journal
  • (c) Purchase Book
  • (d) Sales Book.
Q.11
‘Bills payable discounted in cash by creditor’. In the books of drawee this transaction will be recorded in: -
  • (a) Journal
  • (b) Ledger
  • (c) Bank Book
  • (d) No Entry is required to be made.
Q.12
Ram says Shyam to pay particular sum of money to him. In this oral transaction negotiable instrument Act applied.
  • True
  • False
Q.13
States that powers not given to the Federal government or denied to the States, are powers reserved for the States (people).
  • 10th Amendment
  • 4th Amendment
  • 6th Amendment
  • 8th Amendment
Q.14
Ram makes a promise to pay Rs.20,to Mohan after 1 month through Promissory note (Negotiable instrument).
  • True
  • False
Q.15
Purchases a/c Dr. To Bank a/c To ………….a/c (Bought goods from Mohan and half payment made through cheque and bill accepted for remaining balance)
  • Time Bill
  • Bills payable
  • Endorsement of bill
  • Retiring of the bill
Q.16
Noting charges are borne by
  • Drawee
  • Drawer
  • Holder of bill
  • Notary Public
Q.17
Liability for a discounted bill is a
  • Contingent liability
  • Current liability
  • Non-current Liability
  • None of the Above
Q.18
At the time of renewal of the bill interest is charged for the period of
  • Three month
  • Six Month
  • Original bill
  • Fresh bill
Q.19
A bill of exchange is order to Make payment by
  • a. Conditional
  • b. Unconditional
  • c. A & B both
  • d. None of the Above
Q.20
When rebate on a Bill allowed
  • On Renewal of a bill
  • On Dishonour of a bill
  • On Retirement of a bill
  • On Endorsement of a bill
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