Important Questions for Chapter 8 Bills of Exchange

Important Questions with Answers for Class 11 CBSE Accountancy Chapter 8 Bills of Exchange which is outlined by expert Accountancy teachers from the latest version of CBSE (NCERT) books.

CBSE Class 11 Accountancy Chapter -8 Important Questions

Question 1

What are the two most used negotiable instrument

Answer: The two most used negotiable instrument is.

• Bill of exchange
• Promissory Note

Question 2

What is the bill of exchange

Answer: Bil of exchange is a written document signed by the head of the department or the makers guiding them to pay a certain amount for the order of a certain individual or the bearer of the device.

Question 3

Explain the characteristics of the bill of exchange

Answer: The characteristics of the bill of exchange are.

• A bill of exchange should be in writing
• The order must be unconditional
• The date of payment must be a fixed date
• It should be signed by the drawee of the bill
• It should be signed by the drawer of the bill

Question 4

Is bill of exchange drawn by the debtor?

Answer: No the bill of exchange is not drawn by a debtor

Question 5

Does promissory note require acceptance?

Answer: No, the promissory note does not require acceptance.

Question 6

What is the date of maturity of a bill of exchange?

Answer: The date of maturity of a bill of exchange is the date on which the bill becomes due for payment.

Question 7

What is the date of maturity of a bill of exchange? Calculate the due date of a bill of exchange written on July 13, 2017, for 30 days.

Answer: The date of maturity will be August 14, 2017.

Question 8

What is noting of the bill of exchange?

Answer: Noting is referred to the recording of the fact of dishonour by a notary public.

Question 9

If the acceptor of the bill refuses to pay the bill on maturity, what is it called?

Answer: In situations where the acceptor refuses or is not in a position to pay, such a condition causes breach of promise and leads to dishonour of bill.

Also Check: Important Questions Chapter 9 Financial Statements -1

Question 10

Liability for a discounted bill is a

1. Contingent Liability

2. Fixed Liability

3. Current Liability

4. None of the above

Answer: 1. Contingent Liability

Question 11

Nothing charges are borne by

1. Drawer

2. Drawee

3. Payee

4. Bank

Answer: Drawee

Question 12

What account will be credited when discounted bill is dishonoured?

1. Drawer’s Account

2. Drawee’s Account

3. Endorsee’s Account

4. Bank Account

Answer: Bank Account

Question 13

On a public holiday, the due date of a bill will be due on.

1. One day after the due date

2. Public holiday

3. One day before the due date

4. None of the above

Answer: One day before the due date

Question 14

Bill of exchange is a conditional order to pay

Answer: False

Question 15

A promissory note is drawn and signed by the debtor

Answer: True

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