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    Assignment Ch- Bill of Exchange

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    11 views13 pages

    Assignment CH - Bill of Exchange

    Uploaded by

    Rohit Garg

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 13
    ram's acceptance which was endorsed by us in favou io WE mount will be debited in our books to rol Belsem ie dishonamred, then (a) Saleem (6) Ram, {o) Bills Receivable Account @ None of theee. » the Bills Receivable Book is part of (@) the Journal. (6) the Ledger. —_(c) the profit. (d) Balance Sheet i») Noting Charges Account is debited by (a) Drawer. (b) Drawee. (© Payee. (d) Endorser. ) Ifdue date of a bill falls on a public holiday, then the maturity date is on (a) one day after the maturity date. —_(b) one day before the maturity date. (¢) Public holidays. (d) None of these. xi) In case of renewal of the bill, interest is charged for the period of (a) Original Bill. (b) Fresh Bill. (@) One Month. (d) None of these. xii) Rebate is calculated for the period between date of (a) Payment and Maturity Date. (b) Drawing and Payment of Bill. (c) Drawing and Maturity Date. (@) None of these. [Ans.: (i) (6); (ii) (©); (did) (b); (iv) (6); (v) (©); (vi) (6); (vit) (6); (vied) (a), (ix) (6); (2) (6); Cxd) (bY; (i) (@).] ( Objective Type Questions 1. State whether the following statements are True or False: (i) A bill of exchange is accepted by the payee. (i) A bill of exchange is drawn for all cash transactions. (iii) A negotiable instrument is not freely transferable. (iv) A bill of exchange is drawn by the creditor. (v) A Promissory Note requires acceptance. (vi) A cancellation entry is required, when bill is renewed. [Ans.: (i) False; (ii) False; (iii) False; (iv) True; (v) False; (vi) True.) 2. Fill-in-the blanks with appropriate words: (® If the bill falls due for payment on 26th January, then the due date of payment is January. (i) There are parties to a Promissory Note. (ai) ‘The acceptor is allowed ______-_—_ daywafgrace:to mest the\bill im times (iv) When goods are sold on credit, the seller becomes a and the buyer becomes a ieee (v) When the bill is dishonoured is held responsible for noting charges. (vd A bill of exchange must be signed by the ___—_— (vii) ‘A Promaiengny Mitetie Gipuwn Rvs =, St faeaiareoaa ee three; (iv) creditor, debtor; (v) drawee; (ns: (9 25th; (i two (a) (vi) acceptor: (vit) debtor, creditor.) A Scanned with CamScanner [OBJECTIVE QUESTIONS | 1. Fillo the blanks with appropriate words (i) A bill of exchange is a instrument. (i) There are parties to a promissory note. (ili) A bill of exchange is drawn by the upon his (iv) There are parties to a bill of exchange. (v) Drawer and can not be the same parties in case of a bill of exchange. (vi) The person to whom the amount mentioned in the promissory note is payable is known as (wii) days of grace are added in terms of the bill to calculate the date ofits (viii) Transfer of a negotiable instrument to another person by signing on it, is known as (ix) Ina promissory note, the person who makes the promise to pay is called as (x) A person who endorses the promissory note in favour of another is known as (Ans. (i) Negotiable; (ii) Two; (ii) Drawer, Drawee; (iv) Three; (v) Drawee; (vi) Payee; (vii) 3, Maturity; (viii) Endorsement; (ix) Promisor; (x) Endorser) II. Statgathether the following statements are True or False: Tava of exchange is drawn by the creditor. (li) A negotiable instrument is not freely transferable. (iil) A bill of exchange is drawn for all cash transaction. (iv) The person to whom payment is to be made in a bill or exchange is called payee. (v) The time of payment of a negotiable instrument need not be certain. (vi) Bill of Exchange is an unconditional order to pay. (vil) A Promissory note must be accepted by the Drawee. > (Ans. True: (i), (iv), (vi), (vil); False: (i), (i), (~)) MW. Ti Correct answer from the given choices: 1. Noting charges account is debited by: Drawer (b) Drawee (c) Payee (d) Endorser . 2. If due date of a bill falls on a public holiday, then the maturity date is on: (a) One day after the maturity date (b) One day before the maturity date (c) Public holiday (d) None of the above 3. Abill of exchange is drawn on 6" December, 2018 for 2 months. Its due date will be: (a) 9" February, 2019 (b) 10" February, 2019 (c) 6” February, 2019 (d) None of the above 4. Days of Grace in case of bills of exchange is of: (a) 2days (b) 3days (c) 1 day (d) 4 days 5. Noting charges are paid when a bill of exchange is: (a) Endorsed to a Creditor (b) Met on maturity (c) Dishonoured on Due Date (d) Discounted from the bank Scanned with CamScanner 6. Incase of renewal of the bill, interest is charged for the period of: (a) One Month (b) Ori Bill (c) Fresh Bill (d) None of the above 7, Rebate is calculated for the period between date of: (a) Drawing and Payment of bill (b) Payment and (c) Drawing and maturity date = None of the oe date . It Karan’s acceptance in favour of Mukesh, which is 8 scoskunisile alate raeeeee to Shyam is dishonoured, then (a) Karan's (b) SI 's (c) Bills Receivable (6) Noel es Scanned with CamScanner eT —“‘i‘“‘“s*é‘Cs (a) State the accounts to be debited or credited in the following situations: Books of Drawer wi (id (iii) When a bill is sent for collection, the account to be credited is .. When a bill is dishonoured, the account to be debited is When a discounted bill is dishonoured, the account to be debited is and the account to be credited is When a bill is dishonoured and the noting charges are paid by the endorse, the account to be credited is .. : , (wv) Books of Drawee :— (vy While retiring a bill under rebate, the accounts to be credited are .. (ui) When a bill, which is presented by a bank for payment is dishonoured, the account to be credited ii W (vii) When noting charges are paid by the bank at the time of dishonour of the bill, the drawee credits ... -» account. [Ans.: @) BIR, (ii) Acceptor’s, (iii) Acceptor’s, Bank, (iv) Endorsee’s. (») Bank and Rebate on Bill, (vi) Drawer's, (vii) Drawer’s.] (8) State whether the following statements are ‘True’ or ‘False’ : |. Bill of exchange is an unconditional promise to pay. 2. Bill of exchange is a conditional order to pay. 4. Drawer and Payee can be the same person in case of a bill of exchange. 4. There are two parties in a bill of exchange. 5. A promissory note is drawn and signed by debtor. 6. A promissory note has only two parties, the drawer and the payee. ©.‘ promissory note cannot be made payable to the bearer. 8. Acceptance is necessary in case of a promissory note. 9. The liability of the drawer for the payment of a promissory note is primary. 10. Incase of a public holiday the due date of the bill falls one day later. II. ‘The date of maturity of an “‘after date’’ bill is calculated from the date of drawing the bill. 12. The date of maturity of an “‘afier sight” bill is calculated from the date of acceptance of the bill. 13. A bill from the point of view of a creditor is called a bill receivable. 14. At the time of renewal of a bill, interest account is credited in the books of the drawee. 1s, When a bill is discounted or endorsed, no entry for payment of the bill is passed in the books of the drawer. 16. No entry is passed in the books of the drawee when a bill is either discounted or endorsed. 17. When a bill is renewed, the original bill need not be cancelled. 18. Incase of dishonour of bill, noting charges are initially paid by the drawee. 19. Incase of dishonour, the drawee always debits bills payable account and credits drawer’s account. ‘Scanned with CamScanner 20. Incase of dishonour, the drawer always debits the account of draweg the bill is retained, endorsed or discounted. 1. The bill is t dishonoured in case of insolvency of the drawee 2. Accomodation bills are drawn without consideration, 4 (Ans. : True : 3, 5, 6, 7, 9, 11, 12, 13, 15, 16, 19, 20, 21, 22.) (C) Fill up the blanks : 1. A Bill of Exchange has .... . parties. . The party which is ordered to pay the amount of bill of exchange is The party which is entitled to receive the payment of bill of exchange WS esses, 4 4. Three days added for assed the date of maturity of bill of called ... 5. Due date of a bill pc drawn on 29th January 2017 for one be .. 6, Due date of a bill of exchange drawn on 30th January 2017 for one be. 7. Due date of a bill of exchange drawn on 31st January 2017 for one be 8. pe date of a bill of exchange drawn on 23rd October 2016 for 3 9. Due date of a bill of exchange drawn on 27th December 2015 for 2 be.. 10. Due date eral bill of exchange drawn on 30th June 2017 for 4 months 11, A bill erentenge is called a . payment. 12. A bill of exchange is called a .. by one who is liable to pay its 13, Payee of a bill can get the amount of it before its due date by ... by one who is entitled to |. The person who endorses a bill of exchange is called The person in whose favour an endorsement is made is called . When a bill of exchange is not paid on its due date, it is called 17. When a bill is dishonoured, it is customary to get it 18. The fee charged for getting the bill noted after its

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