MCQ - Bills of Exchange and Promissory Notes - 1 | Principles and Practice of Accounting - CA Foundation PDF Download

 Page 1


Bills of Exchange and 
Promissory Notes-Part 1/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Page 2


Bills of Exchange and 
Promissory Notes-Part 1/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Basic Questions 
Bills of Exchange & Promissory Notes 
Page 3


Bills of Exchange and 
Promissory Notes-Part 1/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Basic Questions 
Bills of Exchange & Promissory Notes 
Question 1 
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 the bill will be: 
a) Rs.20,000  
b) Rs. 19,000  
c) Rs. 19,200  
d) Nil 
Answer (b) 
Page 4


Bills of Exchange and 
Promissory Notes-Part 1/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Basic Questions 
Bills of Exchange & Promissory Notes 
Question 1 
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 the bill will be: 
a) Rs.20,000  
b) Rs. 19,000  
c) Rs. 19,200  
d) Nil 
Answer (b) 
Question 2 
From the following information, find out who 
can draw the bill if Mr A sold goods to B: 
Answer (a) 
a) A will draw a bill on B  
b) B will draw a bill on A 
c) Third party will draw a bill on A 
d) None of these  
Page 5


Bills of Exchange and 
Promissory Notes-Part 1/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Basic Questions 
Bills of Exchange & Promissory Notes 
Question 1 
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 the bill will be: 
a) Rs.20,000  
b) Rs. 19,000  
c) Rs. 19,200  
d) Nil 
Answer (b) 
Question 2 
From the following information, find out who 
can draw the bill if Mr A sold goods to B: 
Answer (a) 
a) A will draw a bill on B  
b) B will draw a bill on A 
c) Third party will draw a bill on A 
d) None of these  
Question 3 
Which of the following statement is false: 
Answer (d) 
a) B/R is a negotiable instrument  
b) B/R must be accepted by drawee. 
c) There can be three parties in respect of bills of 
exchange – drawer, drawee & payee 
d) Oral bill of exchange is also valid.