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Test: Bills Of Exchange And Promissory - 2 - Commerce MCQ


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30 Questions MCQ Test Accountancy Class 11 - Test: Bills Of Exchange And Promissory - 2

Test: Bills Of Exchange And Promissory - 2 for Commerce 2024 is part of Accountancy Class 11 preparation. The Test: Bills Of Exchange And Promissory - 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Bills Of Exchange And Promissory - 2 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Bills Of Exchange And Promissory - 2 below.
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Test: Bills Of Exchange And Promissory - 2 - Question 1

Share premium is utilized for this purpose :

Detailed Solution for Test: Bills Of Exchange And Promissory - 2 - Question 1

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.

Test: Bills Of Exchange And Promissory - 2 - Question 2

Which of the following statements is true?

Test: Bills Of Exchange And Promissory - 2 - 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?

Test: Bills Of Exchange And Promissory - 2 - 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?

Test: Bills Of Exchange And Promissory - 2 - Question 5

The promissory note should be signed by:

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - 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:

Detailed Solution for Test: Bills Of Exchange And Promissory - 2 - Question 8

The correct option is Option C.

The bill was accepted on 21.2.05 

So, we count from 22.2.05

Now, this is drawn for 30 days + maturity day (3 days) which makes it 26.3.05

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - Question 10

Fees paid in cash to Notary Public is charged by:

Detailed Solution for Test: Bills Of Exchange And Promissory - 2 - Question 10

The correct option is Option C.

Noting is the recording of the fact of dishonor by a notary public which becomes an evidence of dishonor. When a bill of exchange is dishonor, in order to prove the fact, the holder may get the bill noted. Charges paid on noting are called as noting charges

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - Question 14

Which of the following is not a foreign bill : 

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - Question 16

Liability for the bill discounted is a ________.

Test: Bills Of Exchange And Promissory - 2 - Question 17

When the bill are to be produced to notary public: 

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - 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?

Test: Bills Of Exchange And Promissory - 2 - 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—

Test: Bills Of Exchange And Promissory - 2 - Question 21

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

Detailed Solution for Test: Bills Of Exchange And Promissory - 2 - Question 21

The long term assets that have no physical existence but are rights that have value is known as Intangible assets. An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets.

Test: Bills Of Exchange And Promissory - 2 - Question 22

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

Test: Bills Of Exchange And Promissory - 2 - Question 23

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

Test: Bills Of Exchange And Promissory - 2 - 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?

Test: Bills Of Exchange And Promissory - 2 - Question 25

Which of the following statement is true: 

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - 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:

Test: Bills Of Exchange And Promissory - 2 - 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______.

Test: Bills Of Exchange And Promissory - 2 - 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?

Test: Bills Of Exchange And Promissory - 2 - Question 30

Under which circumstances drawer and payee is same person: 

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