MCQ - Bills of Exchange and Promissory Notes - 4 | Principles and Practice of Accounting - CA Foundation PDF Download

 Page 1


Bills of Exchange and 
Promissory Notes-Part 4/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Page 2


Bills of Exchange and 
Promissory Notes-Part 4/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Question No 1 
Which of the following statement is true: 
Answer (b)  
(a) Noting charge is an expense to be borne by drawer 
(b) Noting charge is an expense to be borne by drawee 
(c) Noting charge is an expense to be borne by payee 
(d) Noting charge is an expense to be borne by bank 
Page 3


Bills of Exchange and 
Promissory Notes-Part 4/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Question No 1 
Which of the following statement is true: 
Answer (b)  
(a) Noting charge is an expense to be borne by drawer 
(b) Noting charge is an expense to be borne by drawee 
(c) Noting charge is an expense to be borne by payee 
(d) Noting charge is an expense to be borne by bank 
Question No 2 
Fees paid in cash to Notary Public is charged by: 
Answer (c)  
a) Drawer  
b) Drawee  
c) Holder of the bill of exchange  
d) None 
Page 4


Bills of Exchange and 
Promissory Notes-Part 4/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Question No 1 
Which of the following statement is true: 
Answer (b)  
(a) Noting charge is an expense to be borne by drawer 
(b) Noting charge is an expense to be borne by drawee 
(c) Noting charge is an expense to be borne by payee 
(d) Noting charge is an expense to be borne by bank 
Question No 2 
Fees paid in cash to Notary Public is charged by: 
Answer (c)  
a) Drawer  
b) Drawee  
c) Holder of the bill of exchange  
d) None 
Question No 3 
When the bill are to be produced to notary public? 
Answer (c)  
a) At the time of drawing the bill  
b) At the time of acceptance of the bill 
c) At the time of dishonour of the bill  
d) At the time of “bill for collection” 
Page 5


Bills of Exchange and 
Promissory Notes-Part 4/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Question No 1 
Which of the following statement is true: 
Answer (b)  
(a) Noting charge is an expense to be borne by drawer 
(b) Noting charge is an expense to be borne by drawee 
(c) Noting charge is an expense to be borne by payee 
(d) Noting charge is an expense to be borne by bank 
Question No 2 
Fees paid in cash to Notary Public is charged by: 
Answer (c)  
a) Drawer  
b) Drawee  
c) Holder of the bill of exchange  
d) None 
Question No 3 
When the bill are to be produced to notary public? 
Answer (c)  
a) At the time of drawing the bill  
b) At the time of acceptance of the bill 
c) At the time of dishonour of the bill  
d) At the time of “bill for collection” 
Question No 5 
A bill of Rs. 12,000 was discounted by A with the banker for 
Rs. 11,880. At maturity, the bill returned dishonoured, noting 
charges Rs. 20. How much  amount will the bank deduct from 
the bank balance at the time of such dishonour? 
Answer (c)  
(a) 12,000 (b) 11,880 
(c) 12,020 (d) 11,900