Test: Bills Of Exchange And Promissory - 3


40 Questions MCQ Test Principles and Practice of Accounting | Test: Bills Of Exchange And Promissory - 3


Description
This mock test of Test: Bills Of Exchange And Promissory - 3 for CA Foundation helps you for every CA Foundation entrance exam. This contains 40 Multiple Choice Questions for CA Foundation Test: Bills Of Exchange And Promissory - 3 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Bills Of Exchange And Promissory - 3 quiz give you a good mix of easy questions and tough questions. CA Foundation students definitely take this Test: Bills Of Exchange And Promissory - 3 exercise for a better result in the exam. You can find other Test: Bills Of Exchange And Promissory - 3 extra questions, long questions & short questions for CA Foundation on EduRev as well by searching above.
QUESTION: 1

​On 1.1.05 X draws a bill on Y for Rs 20,000 for 3 months due date of the bill will be :

Solution:
QUESTION: 2

On 15.8.05 X draws a bill on Y for 3 months for Rs. 20,000. 18th Nov was a sudden holiday, due date of the bill will be:

Solution:
QUESTION: 3

On 16.6.05 X draws a bill on Y for Rs 25,000 for 30 days. 19th July is a public holiday, due date of the bill will be:

Solution:
QUESTION: 4

X draws a bill on Y for Rs 30,000 on 1.1.05. X accepts the same on 4.1.05. Period of the bill 3 months after date. What will be the due date of the bill:

Solution:
QUESTION: 5

X draws a bill on Y. X endorsed the bill to Z. The payee of the bill will be

Solution:

X draws a bill on Y. X endorsed the bill to Z. Z will be the payee of the bill.

QUESTION: 6

A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from A’s bank balance at the time of such dishonour?

Solution:
QUESTION: 7

X draws a bill on Y for Rs 20,000 on 1.7.05 for 3 months after sight,  date of acceptance is 6.1.05. Due date of the bill will be:

Solution:
QUESTION: 8

X sold goods to Y for Rs 1,00,000. Y paid cash Rs 30,000. X will grant 2% discount on balance, and Y request X to draw a bill for balance, the amount of bill will be:

Solution:
QUESTION: 9

On 1.1.05 X draws a bill on Y for Rs 50,000 for 3 months. X got the bill discounted 4.1.05 at 12% rate. The amount of discount on bill will be:

Solution:
QUESTION: 10

Mr. A draws a bill on Mr. Y for Rs 30,000 on 1.1.06 for 3 months. On 4.2.06. X  got the bill discounted at 12% rate. The amount of discount will be:

Solution:
QUESTION: 11

X draws a bill on Y for Rs 20,000 for 3 months on 1.1.05. The bill is discounted with banker at a charge of Rs 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited by:

Solution:
QUESTION: 12

On 1.1.05 X draws a bill on Y for Rs 10,000. At maturity Y request X to renew the bill for 2 month at 12% p.a. interest. Amount of interest will be:

Solution:
QUESTION: 13

On 1.1.05 X draws a bill on Y for Rs 15000 for 3 months. At maturity Y request  X to accept Rs 5000 in cash and for balance to draw a fresh bill for 2 months together with 12% p.a. interest, amount of interest will be:

Solution:
QUESTION: 14

On 1.8.05 X draw a bill on Y “for 30 days after sight”. The date of acceptance is 8.8.05. The due date of the bill will be:

Solution:
QUESTION: 15

On 1.6.05 X draw a bill on Y for Rs. 25,000. At maturity Y request X to accept Rs. 5,000 in cash and noting charges incurred Rs. 100 and for the balance X draw a bill on Y for 2 months at 12% p.a. Interest amount will be:

Solution:
QUESTION: 16

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: 17

X draws a bill on Y for Rs 3000. X endorsed to Z. Y will pay the amount of the bill to:

Solution:
QUESTION: 18

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: 19

Ram draws on Aslam a bill for Rs. 60,000 on 1.4.01 for 2 months. Aslam accepts the bill and sends it to Ram who gets it discounted for Rs. 58,800. Ram immediately remits Rs. 19,600 to Aslam. On due date, Ram being unable to remit the amount due accepts a bill for Rs. 84,000 for 2 months which is discounted by Aslam for Rs. 82,200. Aslam sends Rs. 14,800 to Ram out of the same. How much discount will be borne by Ram at the time of 14,800 remittances.

Solution:
QUESTION: 20

Mr Bobby sold goods worth Rs 25,000 to Mr Bonny. Bonny immediately accepted a bill on 1.11.01, payable after 2 months. Bobby discounted this bill @ 18% p.a. on 15.11.01. On the due date Bonny failed to discharge the bill. Later on Bonny became insolvent and 50 paise is recovered from Bonny’s estate. How much amount of bad debt will be recorded in the books of Bobby:

Solution:
QUESTION: 21

​The purpose of accommodation bill is:

Solution:
QUESTION: 22

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: 23

On 1.1.05 X draws a bill on Y for Rs 30,000. At maturity Y request X to draw a fresh bill for 2 months together with 12% pa. interest. Noting charges Rs 100. The amount of interest will be:

Solution:
QUESTION: 24

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 due date of the bill will be:

Solution:
QUESTION: 25

X sold goods to Y for Rs 3,00,000. ½ of the amount will be received in cash and balance in B/R. For what amount X should draw the bill on Y.

Solution:
QUESTION: 26

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: 27

​A sold goods to B for Rs 20,000. A will grant 5% discount to B. B requested A to draw a bill. The amount of bills will be:

Solution:
QUESTION: 28

Fees paid in cash to Notary Public is charged by:

Solution:
QUESTION: 29

A draws a bill on B for Rs 50,000. A endorsed it to C in full settlement of Rs 50,500. Noting charges of Rs 200 as the bill returned dishonoured. A want to pay the amount to C at 2 % discount. The amount to be paid by A to C will be:

Solution:
QUESTION: 30

A draws a bill on B for Rs 1,00,000. A endorsed the bill to C. The bill return dishonoured.Noting charges Rs 1000. B request A to accept the amount at 2% discount by a single cheque. The cheque amount will be:

Solution:
QUESTION: 31

S draws 2 bills of exchange on 1.1.06 for Rs 3,000 and Rs 5,000 respectively. The bill of exchange for Rs 3,000 is for 2 months, while the bill of exchange for Rs 5,000 is for 3 months. These bills are accepted by K. On 4.3.06 K requests S to renew the first bill with interest at 18% p.a. for a period of 2 months. S agrees to this proposal. On 20.3.06 K retires the acceptance for Rs 5,000 the interest rebate i.e., discount being Rs 50.Before the due date of the renewed bill K becomes insolvent and only 60 paise in a rupee can be recovered from his estate. How much bad debt will be recorded in the books of S:

Solution:
QUESTION: 32

The promissory note should be signed by:

Solution:
QUESTION: 33

Kuntal draws a bill on Shyam for Rs 3000. Kuntal endorsed it to Ram. Ram endorsed it to Rahim. The payee of the bill will be:

Solution:
QUESTION: 34

A bill is drawn on 29th Jan’ 06 for one month after date. The date of acceptance is 2nd Feb’06. The bill is drawn on one month after date basis. The due date of the bill will be:

Solution:
QUESTION: 35

Mr. Rex accepted a bill drawn by Mr. Rabin. Mr. Rabin endorsed the bill to Mr Shekar. On the due date, the bill is dishonored as Mr Rex became insolvent. To record the dishonor of the bill in the books of Mr. Rabin, which of the following accounts should be credited?

Solution:
QUESTION: 36

Which of the following statements is true?

Solution:
QUESTION: 37

For mutual accommodation of A and B, B accepted a bill drawn on him by A for 2 months Rs 6000. The said bill is discounted at 12% pa. and remitted 1/3rd of the proceeds to B. The amount remitted by A to B will be:  

Solution:
QUESTION: 38

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: 39

A draws a bill on B for Rs 4500 for mutual accommodation in the ratio 2:1. A got it discounted at 4230 and remitted 1/3rd of the proceeds to B. At the time of maturity, how much amount A should remit to B such that B can pay off the bill?

Solution:
QUESTION: 40

Suman drew a bill on Sonu for Rs 4500 for mutual accommodation in the ratio 2:1. Sonu accepted the bill and returned to Suman. Suman discounted the bill for Rs 4230 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 6120. The first bill was honored on the due date and a net amount of Rs 1080 was remitted to Suman by Sonu. The proportionate discount charge on both the bills is to be borne by Suman is:

Solution: