Features of Bill of Exchange

Q.

A bill of exchange must contain "an unconditional promise to pay." Do you agree with a statement?

Q.

Write two points of distinction between bills of exchange and promissory note.

Q. While calculating the due date of the bill, days of grace are added to the period of the bill.

1. two
2. three
3. four
4. five

Q.

What number of days of grace is provided in the Bill of Exchange?

Q. What is Noting of a bill of exchange?

Q.

What is the cash book? Explain the types of the cash book.

Q.

A draws a bill on B for Rs. 60, 000 on 1st January, 2016, X accepts the same on 4th January, 2016 for period of 3 months after date.
What will be the maturity date of the bill?

Q.

Kapil purchased goods for Rs. 21, 000 from Gaurav on 01.02.2011 and accepted a bill of exchange drawn by Gaurav for the same amount. The bill was payable after one month. On 25.02.2008, Gaurav sent the bill to his bank for collection. The bill was duly presented by he bank. Kapil dishonoured the bill and the bank paid Rs. 100 as noting charges.
Record the necessary Journal entries for the above trransactions in the books of kapil and Gaurav.

Q. Which of these statements is true about a Promisory note?

1. A Promissory note is a conditional order to pay
2. A Promissory note cannot be made payable to the bearer
3. A Promissory note does not require stamping
4. A Promissory note cannot be dishonoured

Q.

What are the types of bills of exchange?

Q.

On 1.1.2011, Pawan sold goods to Harish on credit for Rs. 25, 000. Pawan drew a bill for the same amount for two months and sent it to Harish for his acceptance on the same day. On 5.1.2011 Pawan got the acceptance of Harish. In this case, before 5.1.2011 what is the status of the bill?

1. Bearer Cheque

2. Promissory Note

3. It is known as mere draft.

4. Bill of Exchange

Q.

Which of the following can be done using a Bill of exchange?

1. Endorsing

2. Discounting

3. Sending to bank for collection

4. All of these

Q. A bill is accepted by signing it by the to confirm that he/she is binding to it.

1. drawer
2. drawee
3. payee
4. payer

Q.

Can Bills of Exchange be easily tranfered in favour of other?

1. Yes, Bills of Exchange can be easily endorsed in favour of other.

2. No, there is a complex procedure to endorse and hence everyone avoids it.

3. It is a convenient means of transfer between the buyer and seller only.

4. None of these

Q. what is the journal entry for cheque received from Sujeet Rs 500 ?

Q.

Bill of Exchange is a written instrument

1. False

2. True

Q.

Bill of Exchange contains a request rather than an unconditional order to pay the specified amount.

1. True

2. False