SSC CGL Exam  >  SSC CGL Tests  >  SSC CGL Tier 2 - Study Material, Online Tests, Previous Year  >  Test: Bills Of Exchange And Promissory - 4 - SSC CGL MCQ

Test: Bills Of Exchange And Promissory - 4 - SSC CGL MCQ


Test Description

19 Questions MCQ Test SSC CGL Tier 2 - Study Material, Online Tests, Previous Year - Test: Bills Of Exchange And Promissory - 4

Test: Bills Of Exchange And Promissory - 4 for SSC CGL 2024 is part of SSC CGL Tier 2 - Study Material, Online Tests, Previous Year preparation. The Test: Bills Of Exchange And Promissory - 4 questions and answers have been prepared according to the SSC CGL exam syllabus.The Test: Bills Of Exchange And Promissory - 4 MCQs are made for SSC CGL 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Bills Of Exchange And Promissory - 4 below.
Solutions of Test: Bills Of Exchange And Promissory - 4 questions in English are available as part of our SSC CGL Tier 2 - Study Material, Online Tests, Previous Year for SSC CGL & Test: Bills Of Exchange And Promissory - 4 solutions in Hindi for SSC CGL Tier 2 - Study Material, Online Tests, Previous Year course. Download more important topics, notes, lectures and mock test series for SSC CGL Exam by signing up for free. Attempt Test: Bills Of Exchange And Promissory - 4 | 19 questions in 20 minutes | Mock test for SSC CGL preparation | Free important questions MCQ to study SSC CGL Tier 2 - Study Material, Online Tests, Previous Year for SSC CGL Exam | Download free PDF with solutions
Test: Bills Of Exchange And Promissory - 4 - Question 1

​Which of the following instrument is not a negotiable instrument:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 1
Answer:
Introduction:
A negotiable instrument is a written document that promises the payment of a specific amount of money to the bearer or the person whose name is mentioned on the document. It is easily transferable from one person to another, and ownership can be transferred by delivery or endorsement. The negotiable instruments act provides legal protection to these instruments and ensures their enforceability.
Explanation:
Among the given options, the instrument that is not a negotiable instrument is a crossed cheque. Here's why:
Bearer cheque:
- A bearer cheque is a negotiable instrument because it is payable to the bearer, which means anyone who possesses the cheque can present it for payment.
- It can be easily transferred by mere delivery.
Promissory note:
- A promissory note is a written promise made by one person to another to pay a specific sum of money on demand or at a specific time.
- It can be transferred by endorsement and delivery.
Bill of exchange:
- A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a specific sum of money to another person.
- It can be transferred by endorsement and delivery.
Crossed cheque:
- A crossed cheque is a cheque that has two parallel lines drawn across its face.
- It is not a negotiable instrument because it cannot be cashed over the counter. It can only be deposited into the bank account of the payee.
- The crossing acts as a safeguard against the misappropriation of funds and ensures that the cheque is credited to the correct account.
Conclusion:
In conclusion, the instrument that is not a negotiable instrument among the given options is a crossed cheque. Unlike bearer cheques, promissory notes, and bills of exchange, crossed cheques can only be deposited into the bank account of the payee and cannot be cashed over the counter.
Test: Bills Of Exchange And Promissory - 4 - Question 2

On 1.1.06 Vikas draws a bill of exchange for Rs 10,000 due for payment after 3 months on Ekta. Ekta accepts to this bill of exchange. On 4.3.06, Ekta retires the bill of exchange at a discount of 12% p.a. Which of the discount is correct for premature payment in the books of Ekta?

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 2

Given:
- On 1.1.06, Vikas draws a bill of exchange for Rs 10,000 due for payment after 3 months on Ekta.
- Ekta accepts this bill of exchange.
- On 4.3.06, Ekta retires the bill of exchange at a discount of 12% p.a.
To find:
- The correct discount for premature payment in the books of Ekta.
Calculation:
1. Calculate the maturity value of the bill of exchange after 3 months:
- Principal amount = Rs 10,000
- Time = 3 months = 3/12 years
- Rate of interest = 12% p.a.
- Maturity value = Principal amount + (Principal amount * Rate of interest * Time)
= Rs 10,000 + (Rs 10,000 * 12% * 3/12)
= Rs 10,000 + (Rs 10,000 * 0.12 * 0.25)
= Rs 10,000 + Rs 300
= Rs 10,300
2. Calculate the actual amount paid by Ekta for premature payment:
- Discount rate = 12% p.a.
- Time = 2 months = 2/12 years (as the bill was retired on 4.3.06, which is 2 months before the due date)
- Discount = Principal amount * Discount rate * Time
= Rs 10,000 * 12% * 2/12
= Rs 10,000 * 0.12 * 0.167
= Rs 200
3. Calculate the correct discount for premature payment in the books of Ekta:
- Correct discount = Maturity value - Actual amount paid
= Rs 10,300 - Rs 200
= Rs 10,100
Therefore, the correct discount for premature payment in the books of Ekta is Rs 10,100.
Answer: B:

100

1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Bills Of Exchange And Promissory - 4 - Question 3

Neelam sold goods to Dhiman for Rs 4,000 on 1.5.06. On the same day, he drew on Dhiman 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, her estate could pay only 40% of the amount due. What will be the amount of deficiency in the books of Dhiman.

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 3

Given:
- Neelam sold goods to Dhiman for Rs 4,000 on 1.5.06.
- On the same day, Neelam drew a bill on Dhiman for the amount for 3 months, which Dhiman accepted.
- Neelam got the bill discounted with her bank before the due date.
- Dhiman became insolvent and his estate could only pay 40% of the amount due.
To find:
The amount of deficiency in the books of Dhiman.
Calculation:
1. Amount of the bill = Rs 4,000
2. The bill was drawn for 3 months, so the due date would be after 3 months from 1.5.06.
3. Let's assume the due date to be 1.8.06.
4. Neelam got the bill discounted with her bank before the due date, so she received the discounted amount before 1.8.06.
5. Dhiman became insolvent, and his estate could only pay 40% of the amount due.
6. Deficiency = Amount due - Amount paid by the estate.
Calculating the amount due:
- The bill was for Rs 4,000 and drawn for 3 months.
- So, the amount due after 3 months would be Rs 4,000.
Calculating the amount paid by the estate:
- The estate could only pay 40% of the amount due.
- So, the amount paid by the estate would be 40% of Rs 4,000 = Rs 1,600.
Calculating the deficiency:
- Deficiency = Amount due - Amount paid by the estate
- Deficiency = Rs 4,000 - Rs 1,600
- Deficiency = Rs 2,400
Therefore, the amount of deficiency in the books of Dhiman is Rs 2,400. Hence, the answer is option C.
Test: Bills Of Exchange And Promissory - 4 - Question 4

Which of the following is not a foreign bill:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 4
Explanation:
The correct answer is D: A bill drawn on a person resident in India made payable in India.
Foreign bills:
- A foreign bill is a bill of exchange that is drawn and made payable outside the country where it is issued.
- It involves parties who are not residents of the country where the bill is drawn.
Analysis of options:
A: A bill drawn in India, on a person resident outside India and made payable outside India.
- This is a foreign bill because it is drawn in India but made payable outside India.
B: A bill drawn outside India, on a person resident outside India.
- This is a foreign bill because it is drawn outside India and involves parties who are not residents of India.
C: A bill drawn outside India, made payable in India.
- This is a foreign bill because it is drawn outside India but made payable in India.
D: A bill drawn on a person resident in India made payable in India.
- This is not a foreign bill because it is drawn on a person resident in India and made payable in India. It does not involve parties outside India.
Conclusion:
Option D is not a foreign bill as it involves parties within India for both drawing and payment.
Test: Bills Of Exchange And Promissory - 4 - Question 5

Which of the following is correct for presenting bill to notary public:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 5
Answer:

Presenting a bill to a notary public:


Correct option: C


Explanation:


The correct option for presenting a bill to a notary public is option C:



  • If the acceptor can prove that the bill was not properly presented to him for payment, he can escape the liability, hence for dishonour it is produced.


This option is correct because it highlights the importance of properly presenting a bill to the acceptor for payment. If the bill is not properly presented, the acceptor can escape liability for dishonoring the bill.


The other options are incorrect:



  • Option A: To pay fees to notary public - This option does not pertain to presenting a bill to a notary public.

  • Option B: For "bill for collection" - This option does not explain the process of presenting a bill to a notary public.

  • Option D: For drawing a fresh bill - This option does not relate to presenting a bill to a notary public.


Therefore, option C is the correct answer for presenting a bill to a notary public.

Test: Bills Of Exchange And Promissory - 4 - Question 6

A drew a bill on B for Rs 50,000 for 3 months. Proceeds are to be shared equally. A got the bill discounted at 12% p.a. and remits required proceeds to B. The amount of such remittance will be:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 6

Given information:
- A drew a bill on B for Rs 50,000 for 3 months.
- Proceeds are to be shared equally.
- A got the bill discounted at 12% p.a.
To find: The amount of remittance that A will pay to B.
Step 1: Calculate the discount amount:
- The bill amount is Rs 50,000.
- The discount rate is 12% p.a.
- The time period is 3 months.
Calculation:
Discount = (Bill Amount * Discount Rate * Time)/100
= (50,000 * 12 * 3/12)/100
= (50,000 * 36)/1200
= 1,500
Step 2: Calculate the amount to be remitted to B:
- The bill amount is Rs 50,000.
- The discount amount is Rs 1,500.
- Proceeds are to be shared equally.
Calculation:
Amount to be remitted = (Bill Amount - Discount Amount)/2
= (50,000 - 1,500)/2
= 48,500/2
= 24,250
Therefore, the amount of remittance that A will pay to B is Rs 24,250.
Answer: A: 24250
Test: Bills Of Exchange And Promissory - 4 - Question 7

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

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 7

To determine who can draw the bill if Mr A sold goods to B, we need to analyze the given information:
- A: A will draw a bill on B
- B: B will draw a bill on A
- C: None
- D: Third party will draw a bill on A
Analysis:
Based on the given information, we can conclude the following:
- A is willing to draw a bill on B, indicating that A wants B to make the payment.
- B is willing to draw a bill on A, suggesting that B wants A to make the payment.
- C states that there is no bill involved in the transaction.
- D states that a third party will draw a bill on A, indicating that someone other than A or B will request payment from A.
Conclusion:
Considering the given information, we can determine that A, who sold the goods to B, will draw the bill on B. Therefore, the correct answer is option A.
Test: Bills Of Exchange And Promissory - 4 - Question 8

When the bill are to be produced to notary public:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 8
When the bill are to be produced to notary public:


There are specific instances when a bill needs to be produced to a notary public. The timing of when the bill should be presented to the notary public depends on the specific situation. Let's explore the different scenarios:


A. At the time of drawing the bill:
- The bill is presented to the notary public when it is initially created and drawn up.
- This is done to authenticate the creation and contents of the bill.
- The notary public will attest to the fact that the bill was properly executed.
B. At the time of acceptance of the bill:
- The bill is presented to the notary public when it has been accepted by the drawee.
- This is done to confirm the acceptance of the bill by the drawee.
- The notary public will attest to the fact that the bill has been accepted.
C. At the time of dishonour of the bill:
- The bill is presented to the notary public when it has been dishonored or not paid by the drawee.
- This is done to officially record the dishonor of the bill.
- The notary public will attest to the fact that the bill has been dishonored.
D. At the time of "bill for collection":
- The bill is presented to the notary public when it is being sent for collection.
- This is done to provide an official record of the bill being sent for collection.
- The notary public will attest to the fact that the bill has been sent for collection.
In conclusion, the bill can be produced to a notary public at different stages depending on the purpose, such as during its creation, acceptance, dishonor, or when sent for collection. The notary public plays a crucial role in authenticating and recording these events related to the bill.
Test: Bills Of Exchange And Promissory - 4 - Question 9

Which of the following statement is false:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 9
False Statement: Oral bill of exchange is also valid.
Explanation:
The correct statement is that an oral bill of exchange is not valid. Here's a detailed explanation of each statement:
A: B/R is a negotiable instrument
- This statement is true. B/R stands for Bill of Exchange, which is a negotiable instrument used in commercial transactions.
B: B/R must be accepted by drawee
- This statement is true. The drawee of a bill of exchange must accept the obligation to pay according to the terms stated in the bill.
C: There can be three parties in respect of bills of exchange - drawer, drawee & payee
- This statement is true. The three parties involved in a bill of exchange are:
- Drawer: The person who creates and issues the bill, usually the creditor or seller.
- Drawee: The person or entity on whom the bill is drawn, usually the debtor or buyer.
- Payee: The person or entity to whom the payment is to be made, usually the creditor or seller.
D: Oral bill of exchange is also valid
- This statement is false. A bill of exchange must be in writing to be valid. It requires a written instrument that meets specific legal requirements to be enforceable.
In conclusion, the false statement is that an oral bill of exchange is also valid.
Test: Bills Of Exchange And Promissory - 4 - Question 10

Under which circumstances drawer and payee is same person:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 10
Under which circumstances drawer and payee is same person:
There is only one circumstance under which the drawer and payee can be the same person:
When the drawer holds the bill till maturity.
Explanation:
- Drawer: The drawer is the person who creates and signs the bill of exchange, making it a legally binding document.
- Payee: The payee is the person who is entitled to receive the payment mentioned in the bill of exchange.
In the given options:
A. When the drawer discounts the bill with a banker:
- Discounting a bill means selling it to a banker at a discounted price before its maturity. In this case, the drawer and payee would be different parties.
B. When the drawer endorses the bill to a third party:
- Endorsing a bill means transferring the rights of the bill to another person. In this case, the drawer and payee would be different parties.
C. When the drawer holds the bill till maturity:
- If the drawer retains possession of the bill and does not transfer it to anyone else, they would be both the drawer and the payee. This can happen when the drawer wants to receive the payment personally.
D. When the drawee rejects to accept the bill:
- The drawee is the party to whom the bill is addressed and who is responsible for making the payment. If the drawee rejects to accept the bill, it does not affect the identity of the drawer and payee.
Therefore, the correct answer is C: When the drawer holds the bill till maturity.
Test: Bills Of Exchange And Promissory - 4 - Question 11

Which of the following statement is true:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 11
Explanation:
To determine which statement is true, let's understand what a noting charge is and who bears the expense:
- Noting charge: A noting charge is a fee charged by a notary public for recording a protest of a dishonored negotiable instrument, such as a promissory note or bill of exchange.
Now let's analyze each statement:
A: Noting charge is an expense to be borne by drawer: The drawer is the person who writes the negotiable instrument, such as a check. However, the noting charge is not an expense that the drawer is responsible for. This statement is false.
B: Noting charge is an expense to be borne by drawee: The drawee is the person or entity on whom the negotiable instrument is drawn, usually the bank. In the case of a dishonored instrument, the drawee is responsible for the noting charge. This statement is true.
C: Noting charge is an expense to be borne by payee: The payee is the person or entity to whom the negotiable instrument is payable. The payee is not responsible for the noting charge. This statement is false.
D: Noting charge is an expense to be borne by bank: The bank, as the drawee, is indeed responsible for the noting charge in the case of a dishonored instrument. This statement is false.
Therefore, the correct answer is B: Noting charge is an expense to be borne by drawee.
Test: Bills Of Exchange And Promissory - 4 - Question 12

Which of the following statement is true:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 12
Statement: Which of the following statements is true:
A: Creditors can draw a bill on Debtors.
B: Debtors can draw a bill on Creditors.
C: Bank will draw a bill on customer at the time of overdraft.
D: One can draw the bill on another under any circumstances.
Answer: A
Explanation:
The correct statement is A: Creditors can draw a bill on Debtors. Here's why:
- Bill of Exchange: A bill of exchange is a negotiable instrument that is used in commercial transactions to create a written order from one party to another, requiring the recipient to pay a fixed sum of money at a predetermined date in the future.
- Creditors and Debtors: In the context of bills of exchange, a creditor is someone who is owed money, while a debtor is someone who owes money to the creditor.
- Drawer and Drawee: The person who creates and signs the bill of exchange is called the drawer, and the person on whom the bill is drawn is called the drawee.
- Acceptance: The drawee has the option to accept or refuse the bill. If the drawee accepts the bill, they become the acceptor and are legally bound to pay the specified amount.
- Creditor drawing a bill on Debtors: In certain situations, a creditor can draw a bill of exchange on a debtor, essentially creating a written order for the debtor to pay a specific amount at a later date. This allows the creditor to formalize the debt and potentially transfer the bill to another party for payment or negotiation.
Overall, it is true that creditors can draw a bill on debtors, making statement A the correct answer.
Test: Bills Of Exchange And Promissory - 4 - Question 13

Indian currency is a

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 13
Indian currency is a Promissory Note
Explanation:
Indian currency, also known as the Indian Rupee (INR), is considered a promissory note. Here's a detailed explanation:
- Definition of a Promissory Note: A promissory note is a legal instrument that serves as a written promise to pay a specific amount of money to the bearer or a specified person. It is an unconditional promise made by one party to another in writing.
- Characteristics of Indian Currency: The Indian currency meets the criteria of a promissory note due to the following characteristics:
1. Unconditional Promise: The Indian currency notes, issued by the Reserve Bank of India (RBI), bear the promise to pay the bearer the specified amount mentioned on the note.
2. Legal Tender: Indian currency is recognized as legal tender in India, which means it must be accepted as a form of payment for goods, services, and debts in the country.
3. Transferable: Indian currency can be transferred from one person to another without any restrictions or limitations.
4. Bearer Instrument: The person who possesses the Indian currency note becomes the rightful owner and can claim the specified amount mentioned on it.
- Role of the Reserve Bank of India: The Reserve Bank of India, as the central bank of the country, issues and manages the Indian currency. It ensures that the currency notes maintain their integrity and value, making them reliable promissory notes.
- Usage and Acceptance: Indian currency is widely used across India for various transactions, including retail purchases, payment of bills, salaries, and other financial obligations. It is accepted by individuals, businesses, and government entities as a valid form of payment.
In conclusion, Indian currency is considered a promissory note due to its characteristics, including the unconditional promise to pay, legal tender status, transferability, and being a bearer instrument.
Test: Bills Of Exchange And Promissory - 4 - Question 14

Gouri sold goods to Gupta on 1.6.06 for Rs 1600. Gupta immediately accepted a three months bill. On due date Gupta requested that the bill be renewed for a fresh period of two months. Gouri agrees provided interest at 9% was paid immediately in cash. What will be the amount of interest in the books of Gouri?

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 14

Given:
- Gouri sold goods to Gupta on 1.6.06 for Rs 1600.
- Gupta immediately accepted a three months bill.
- On the due date, Gupta requested to renew the bill for a fresh period of two months.
- Gouri agrees, provided interest at 9% was paid immediately in cash.
To find: The amount of interest in the books of Gouri.
Calculations:
1. The original bill amount is Rs 1600.
2. The original bill period is three months.
3. Gupta requests to renew the bill for an additional two months.
4. Gouri agrees on the condition that interest at 9% is paid immediately in cash.
5. The interest rate is 9%.
6. The interest is to be calculated on the original bill amount for the additional two months.
7. The formula to calculate simple interest is: Interest = (Principal * Rate * Time) / 100.
8. The time period for the additional two months is (2/12) years.
9. Therefore, the interest amount is:
Interest = (1600 * 9 * 2/12) / 100
= (288 * 1/6)
= 48.
Answer: The amount of interest in the books of Gouri is Rs 48.
Test: Bills Of Exchange And Promissory - 4 - Question 15

X draws a bill on Y on 1.1.05 for Rs 20,000 for 30 days. What will be the maturity date of the bill:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 15
Calculation:
To determine the maturity date of the bill, we need to add the number of days mentioned in the bill to the starting date.
Given:
Starting date (drawn on): 1.1.05
Bill duration: 30 days
Step 1: Add the number of days to the starting date
Starting date + Bill duration = Maturity date
Step 2: Calculate the maturity date
1.1.05 + 30 days = 31.1.05
Answer:
The maturity date of the bill will be 31.1.05.
Explanation:
The bill is drawn on 1.1.05 and has a duration of 30 days. To find the maturity date, we add 30 days to the starting date. Therefore, the maturity date is 31.1.05.
Test: Bills Of Exchange And Promissory - 4 - Question 16

Ram’s acceptance to Din for Rs 8,000 renewed at 3 months on the condition that Rs 4,000 be paid in cash immediately and the remaining amount will carry interest @ 12% p.a. The amount of interest will be:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 16
Given information:
- Ram's acceptance to Din is for Rs 8,000.
- The acceptance is renewed for 3 months.
- Rs 4,000 needs to be paid in cash immediately.
- The remaining amount will carry interest at the rate of 12% per annum.
To find: The amount of interest.

Step 1: Calculate the amount paid in cash immediately.
- Rs 4,000 is paid in cash immediately.
Step 2: Calculate the remaining amount which will carry interest.
- The total acceptance amount is Rs 8,000.
- Rs 4,000 is already paid in cash.
- Therefore, the remaining amount is Rs 8,000 - Rs 4,000 = Rs 4,000.
Step 3: Calculate the interest on the remaining amount for 3 months.
- The interest rate is 12% per annum.
- Therefore, the interest rate for 3 months is 12%/4 = 3%.
- The interest on Rs 4,000 for 3 months is (3/100) * Rs 4,000 = Rs 120.
Answer: The amount of interest is Rs 120. Therefore, option A is correct.
Test: Bills Of Exchange And Promissory - 4 - Question 17

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 B?

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 17

Given:
Bill amount drawn by A on B = Rs 30,000
Settlement amount between A and C = Rs 35,000
Discount rate = 2%
To find: How much cash A will pay to B?
Step 1: Calculate the discount amount:
Discount amount = Settlement amount x Discount rate / 100
Discount amount = 35,000 x 2 / 100
Discount amount = Rs 700
Step 2: Calculate the amount to be paid in cash:
Amount to be paid in cash = Settlement amount - Discount amount
Amount to be paid in cash = 35,000 - 700
Amount to be paid in cash = Rs 34,300
Therefore, A will pay Rs 34,300 in cash to B.
Answer: A will pay Rs 34,300 in cash to B.
Test: Bills Of Exchange And Promissory - 4 - Question 18

Ram gets Ghosh’s acceptance for Rs 12,000 discounted at 2 months at 12% p.a. The amount of discount will be:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 18

To find the amount of discount, we can use the formula:
Discount = Face Value - Present Value
Given:
Face Value (FV) = Rs 12,000
Time (t) = 2 months = 2/12 years
Rate of interest (r) = 12% p.a.
Calculations:
1. Convert the time from months to years:
t = 2/12 = 1/6 years
2. Calculate the present value (PV) using the formula:
PV = FV / (1 + rt)
PV = 12000 / (1 + 0.12 * 1/6)
= 12000 / (1 + 0.02)
= 12000 / 1.02
= 11764.71 (approx.)
3. Calculate the discount:
Discount = FV - PV
= 12000 - 11764.71
= 235.29 (approx.)
Answer:
The amount of discount will be approximately Rs 235.29. Therefore, option A is the correct answer.
Test: Bills Of Exchange And Promissory - 4 - Question 19

If the due date is a public holiday, what will be the due date of the bill:

Detailed Solution for Test: Bills Of Exchange And Promissory - 4 - Question 19

When the due date of a bill falls on a public holiday, the bill's due date will be the preceding day.


Reasoning:

Public holidays are non-working days, and most businesses and institutions are closed on these days. Therefore, if a bill is due on a public holiday, it cannot be paid or processed on that day. The due date needs to be adjusted to a working day so that the bill can be paid on time.


Detailed Explanation:

Here is a step-by-step breakdown of why the answer is option B - Preceding day:



  • Public holidays are designated days on which businesses and institutions are closed.

  • If a bill is due on a public holiday, it cannot be paid or processed on that day.

  • Therefore, the due date needs to be adjusted to a working day.

  • The adjusted due date will be the preceding day, which is the last working day before the public holiday.


Example:

Let's say a bill is due on December 25th, which is Christmas Day, a public holiday. The adjusted due date would be December 24th, the preceding day, which is a working day.


Conclusion:

When the due date of a bill falls on a public holiday, the bill's due date will be the preceding day. This adjustment ensures that the bill can be paid on a working day when businesses and institutions are open.

1365 videos|1312 docs|1010 tests
Information about Test: Bills Of Exchange And Promissory - 4 Page
In this test you can find the Exam questions for Test: Bills Of Exchange And Promissory - 4 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Bills Of Exchange And Promissory - 4, EduRev gives you an ample number of Online tests for practice

Top Courses for SSC CGL

Download as PDF

Top Courses for SSC CGL