Test: Bills Of Exchange And Promissory - 2


30 Questions MCQ Test Principles and Practice of Accounting | Test: Bills Of Exchange And Promissory - 2


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QUESTION: 1

Share premium is utilized for this purpose :

Solution:

According to Sec 78 of the Companies Act, share premium account may be applied by the company for:-

1. Issuing to members of the company fully paid bonus shares; or

2. writing off the preliminary expenses of the company; or

3. writing off the expenses of, or the commission paid or discount allowed on issue of shares or debentures of the company; or

4. Providing for the premium payable on the redemption of any redeemable preference shares or debentures.

QUESTION: 2

Which of the following statements is true?

Solution:
QUESTION: 3

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?

Solution:
QUESTION: 4

M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?

Solution:
QUESTION: 5

The promissory note should be signed by:

Solution:
QUESTION: 6

 A draws a bill on B for Rs. 1,00,000. A endorsed the bill to C. the bill return dishonoured. Noting charges Rs. 1,000. B request A to accept the amount at 2% discount by a single cheque. The cheque amount will be:

Solution:
QUESTION: 7

Suman drew a bill on Sonu for Rs. 4,500 for mutual accommodation in the ratio 2:1. Sonu accepted the bill and returned to Suman. Suman discounted the bill for Rs. 4,230 and remitted 1/3rd proceeds to Sonu. Before the due date, not having funds to meet the bill, Sonu drew a bill on Suman for Rs. 6,300 on the same terms as to mutual accommodation. The second bill was discounted for Rs. 6,120. The first bill was honored on the due date and a net amount of Rs. 1,080 was remitted to Suman by Sonu. The proportionate discount charge on both the bills is to be borne by Suman is:

Solution:
QUESTION: 8

On 18.2.05 A draw a bill on B for Rs. 10,000. B accepted the bill on 21.2.05. The bill is drawn for 30 days after sight .The maturity date of the bill will be:

Solution:
QUESTION: 9

On 1.1.05, X draw a bill on Y for Rs. 50,000. At maturity, the bill returned dishonoured as Y become insolvent and 40 paise per rupee is recovered from his estate. The amount recovered is:

Solution:
QUESTION: 10

Fees paid in cash to Notary Public is charged by:

Solution:
QUESTION: 11

A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 500. 40 paise in a rupee is recovered from B,s estate. The amount of deficiency to be recorded on insolvency in the books of B will be:

Solution:
QUESTION: 12

Lara draws an accommodation bill on Sachin. The proceeds are to be borne between Sachin and Lara in the ratio of 3:1. The amount of bill Rs. 6000, discounting charges Rs. 120. Discount borne by Sachin will be:

Solution:
QUESTION: 13

On 1.1.05 X draw a bill on Y for 3 months for Rs. 10,000. On 4.3.05 Y pay the bill to X at 12% discount, the amount of discount will be:

Solution:
QUESTION: 14

Which of the following is not a foreign bill : 

Solution:
QUESTION: 15

 A bill is drawn on 29th Jan. 2011 for one month after date. The date of acceptance is 2nd Feb. 2011. The maturity date of the bill will be:

Solution:
QUESTION: 16

Liability for the bill discounted is a ________.

Solution:
QUESTION: 17

When the bill are to be produced to notary public: 

Solution:
QUESTION: 18

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:

Solution:
QUESTION: 19

If a bill is drawn on 1st Jan, and accepted on 8th Jan. What will be the due date of the bill if the term of the bill is 30 days after sight?

Solution:
QUESTION: 20

A drew an accommodation bill on B for 3 months. Proceeds were to be shared equally. A got the bill discounted at 12% p.a. and remitted the proceeds of Rs. 48,500 to B. The total amount of the bill was—

Solution:
QUESTION: 21

The long term assets that have no physical existence but are rights that have value is known as

Solution:
QUESTION: 22

 In case of “Bill at Sight”, days of grace are:

Solution:
QUESTION: 23

 ‘Bills payable discounted in cash by creditor’. In the books of drawee this transaction will be recorded in:-

Solution:
QUESTION: 24

Rahim draws a bills on Ram. Ram accepts the bill. Rahim endorse the bill to Salim. In books of Rahim which account is to be debited at the time of such endorsement?

Solution:
QUESTION: 25

Which of the following statement is true: 

Solution:
QUESTION: 26

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:

Solution:
QUESTION: 27

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

Solution:
QUESTION: 28

P sold goods to Q for Rs. 2,00,000. Q paid cash Rs. 60,000. P allowed 2% discount on balance and Q requested to draw a bill for the balance amount. The amount of the bill will be______.

Solution:
QUESTION: 29

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?

Solution:
QUESTION: 30

Under which circumstances drawer and payee is same person: 

Solution: