CA Foundation Exam > CA Foundation Questions > Which of the following statements is true?a)A...
Start Learning for Free
Which of the following statements is true?
- a)A bill cannot be endorsed more than two times
- b)A bill is drawn by purchaser
- c)A bill contains an unconditional promise to pay
- d)Noting charges are borne by the drawee in the event of dishonour of bill.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements is true?a)A bill cannot be endorsed ...
Yes d is correct option because on the dishonour of bill the charges are debited to drawee's account by drawer and the amount of bill is paid by drawee alongwith the noting charges.
Free Test
FREE
| Start Free Test |
Community Answer
Which of the following statements is true?a)A bill cannot be endorsed ...
Explanation:
In order to determine which of the given statements is true, let's evaluate each statement one by one:
a) A bill cannot be endorsed more than two times:
This statement is incorrect. A bill can be endorsed any number of times as long as the endorsements are valid and the subsequent endorsers are willing to accept the responsibility of payment.
b) A bill is drawn by the purchaser:
This statement is incorrect. A bill of exchange is a negotiable instrument that is drawn by the creditor (also known as the drawer) and is addressed to the debtor (also known as the drawee). The drawee is requested to make payment to the person mentioned in the bill or to their order.
c) A bill contains an unconditional promise to pay:
This statement is correct. A bill of exchange is a written document that contains an unconditional promise by the drawer to pay a certain sum of money to the payee or the holder of the bill. This promise to pay is the essential characteristic of a bill of exchange.
d) Noting charges are borne by the drawee in the event of dishonour of bill:
This statement is correct. When a bill of exchange is dishonored, i.e., the drawee fails to make the payment as promised, the bill is sent for noting to a Notary Public. The charges for noting, including the notary fees, are borne by the drawee, who is responsible for the dishonor of the bill.
Therefore, the correct statement among the given options is option 'D' - Noting charges are borne by the drawee in the event of dishonour of bill.
In order to determine which of the given statements is true, let's evaluate each statement one by one:
a) A bill cannot be endorsed more than two times:
This statement is incorrect. A bill can be endorsed any number of times as long as the endorsements are valid and the subsequent endorsers are willing to accept the responsibility of payment.
b) A bill is drawn by the purchaser:
This statement is incorrect. A bill of exchange is a negotiable instrument that is drawn by the creditor (also known as the drawer) and is addressed to the debtor (also known as the drawee). The drawee is requested to make payment to the person mentioned in the bill or to their order.
c) A bill contains an unconditional promise to pay:
This statement is correct. A bill of exchange is a written document that contains an unconditional promise by the drawer to pay a certain sum of money to the payee or the holder of the bill. This promise to pay is the essential characteristic of a bill of exchange.
d) Noting charges are borne by the drawee in the event of dishonour of bill:
This statement is correct. When a bill of exchange is dishonored, i.e., the drawee fails to make the payment as promised, the bill is sent for noting to a Notary Public. The charges for noting, including the notary fees, are borne by the drawee, who is responsible for the dishonor of the bill.
Therefore, the correct statement among the given options is option 'D' - Noting charges are borne by the drawee in the event of dishonour of bill.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer?
Question Description
Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer?.
Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which of the following statements is true?a)A bill cannot be endorsed more than two timesb)A bill is drawn by purchaserc)A bill contains an unconditional promise to payd)Noting charges are borne by the drawee in the event of dishonour of bill.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup