MCQ - Bills of Exchange and Promissory Notes - 5 | Principles and Practice of Accounting - CA Foundation PDF Download

 Page 1


Bills of Exchange and 
Promissory Notes-Part 5/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Page 2


Bills of Exchange and 
Promissory Notes-Part 5/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Question No 1 
The purpose of accommodation bill is: 
Answer (c)  
(a) To finance actual purchase or sale of goods 
(b) To facilitate trade transmission 
(c) When both parties are in need of funds 
(d) None of the above 
Page 3


Bills of Exchange and 
Promissory Notes-Part 5/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Question No 1 
The purpose of accommodation bill is: 
Answer (c)  
(a) To finance actual purchase or sale of goods 
(b) To facilitate trade transmission 
(c) When both parties are in need of funds 
(d) None of the above 
Question No 2 
A draws a bill on B for Rs. 4,500 for mutual 
accommodation in the ratio 2:1. A got it discounted at 
Rs. 4,230 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 bill? 
Answer (a)  
(a) Rs. 3,000  (b) Rs. 2,880  (c) Rs. 2,920 (d) Rs. 3,010 
Page 4


Bills of Exchange and 
Promissory Notes-Part 5/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Question No 1 
The purpose of accommodation bill is: 
Answer (c)  
(a) To finance actual purchase or sale of goods 
(b) To facilitate trade transmission 
(c) When both parties are in need of funds 
(d) None of the above 
Question No 2 
A draws a bill on B for Rs. 4,500 for mutual 
accommodation in the ratio 2:1. A got it discounted at 
Rs. 4,230 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 bill? 
Answer (a)  
(a) Rs. 3,000  (b) Rs. 2,880  (c) Rs. 2,920 (d) Rs. 3,010 
Question No 3 
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 6000, discounting 
charges 120. Discount borne by Sachin will be: 
Answer (a)  
(a) 90  
(b) 120  
(c) 100  
(d) None          
Page 5


Bills of Exchange and 
Promissory Notes-Part 5/6 
CPT Section A Fundamentals of 
Accountancy Chapter 7 Unit 3 
CA. Ajay Lunawat 
Question No 1 
The purpose of accommodation bill is: 
Answer (c)  
(a) To finance actual purchase or sale of goods 
(b) To facilitate trade transmission 
(c) When both parties are in need of funds 
(d) None of the above 
Question No 2 
A draws a bill on B for Rs. 4,500 for mutual 
accommodation in the ratio 2:1. A got it discounted at 
Rs. 4,230 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 bill? 
Answer (a)  
(a) Rs. 3,000  (b) Rs. 2,880  (c) Rs. 2,920 (d) Rs. 3,010 
Question No 3 
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 6000, discounting 
charges 120. Discount borne by Sachin will be: 
Answer (a)  
(a) 90  
(b) 120  
(c) 100  
(d) None          
Question No 4 
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: 
Answer (a)  
a) Rs. 24,250  
b) Rs. 
25,000  
c) Rs. 
16,167  
d) Rs. 
32,333