Accommodation of Bill

Q.

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?

1. Rs. 2, 880

2. Rs. 3, 000

3. Rs. 2, 920

4. None of the above

Q.

Who gets the proceeds of the accomodation bill ?

1. Drawer of the bill

2. Drawee of the bill

3. Drawer & drawee in the agreed ratio

4. None of the above

Q.

The purpose of accommodation bill is :

1. To finance actual purchase or sale of goods

2. To facilitate trade transmission

3. When any one or both parties are in need of funds

4. None of the above

Q.

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 for A & B will be:

1. Rs. 25, 000 each

2. Rs. 24, 250 each

3. Rs. 16, 167 each

4. Rs. 32, 333 each

Q.

The purpose of accommodation bill is-

1. To raise finance.

2. None of the above

3. To finance actual purchase or sale of goods.

4. To facilitate trade transmission

Q.

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 Rs. 6, 000, discounting charges Rs. 120. Discount borne by Sachin will be:

1. Rs. 90

2. Rs.120

3. Rs. 100

4. None of the above

Q.

Accomodation bills are drawn, accepted & endorsed …

1. None of the above

2. For some consideration

3. Without any consideration

4. For half consideration

Q. The purpose of accommodation bill is to raise finance.

1. True
2. False

Q. Accommodation bills are drawn, accepted and endorsed without any consideration.

1. False
2. True

Q. The proceeds of the accommodation bill is shared among the drawer and drawee in the agreed ratio.

1. True
2. False