This a MCQ (Multiple Choice Question) based practice test of Chapter 6 - Bill of Exchange of Accountancy of Class XI (11) for the quick revision/preparation of School Board examinations
Q Bill of Exchange has parties :
3 is the correct answer
A bill of exchange consist of three parties namely drawer,drawee,payee
The party which is ordered to pay the amount of bill of exchange is called :
The party upon whom the bill is drawn is called the drawee. He is the person to whom the bill is addressed and who is ordered to pay. He becomes an acceptor when he indicates his willingness to pay the bill.
The party which is entitled to receive the payment of bill of exchange is known as :
The correct answer is B.
A person to whom money is paid or is to be paid, especially the person to whom a cheque is made payable.A payee is a party in an exchange who receives payment. The payee is paid by cash, check, or another transfer medium by a payer
The drawee is the party that pays the sum specified by the bill of exchange
The drawer is the party that obliges the drawee to pay the payee. The drawer and the payee are the same entity unless the drawer transfers the bill of exchange to a third-party payee.
So payee is the correct option.
Due date of a bill of exchange drawn on 30th January, 2011 for one month will be :
Due date of a bill is only after the given period (in this case one month ) plus three days of grace . So the bill will be paid only after 1month and 3 days i.e. on 3rd march.
The promissory note should be signed by
Promissory Notes. A negotiable instrument is a document in writing. It is signed by a certain person who promises to pay another person a fixed sum of money on a fixed date.
On dishonor of a discounted bil.l whom does the bank look for payment?
Drawer(the person who had received B/R) because he had discounted the bill from the bank and now he's liable for it's dishonour. But later he can claim this amt. from drawee.
While calculating the due date of the bill, how many days are added to the period of the bill :
3 days of grace are added to the period of bill while calculating the due date of the bill.
Encashing the bill before the date of its maturity is called :
When we encash a bill before it's maturity, it's generally discounted with bank, bank charges some discounting charges and thus the process is known as discounting of bill.
A bill of exchange renewed generally at the request of
When drawer want their money and drawee is not in the position to pay his money, then he wants some time to pay his money and so he requests to make a new bill to drawer.
A bill of exchange can not be
A bill of exchange is a document used in transactions that orders the payer to pay a certain amount of money to the payee. It is a guarantee of payment on demand or on a specified date, and it cannot be refused or cancelled, like a check.