Journal for Holding till Maturity

Q.

Distinguish between trade bill and accommodation bill.

Q.

Briefly explain the effects of dishonour and noting of a bill of exchange.

Q.

Entry regarding payment of the bill will be passed in the books of the drawer, if the bill is _______

1. Is endorsed

2. Retained by the drawer

3. Is discounted

4. None of these

Q. account is debited in the books of drawee at the time of honoring the bill.

1. Bills receivable
2. Bills payable
3. Bank
4. Drawer's

Q. Which of the following account will be debited in the books of drawee, when the acceptance on bill is given?

1. Sales

2. None of the above

3. Bills payable

4. Creditors

Q. If the bill is paid on the date of maturity, it is termed as of the bill.

1. discounting
2. honoring
3. dishonoring
4. renewal

Q.

State the causes of difference occurred due to the time lag.

Q. X draws a bill of Rs. 17, 000 on Y for 3 months for the amount due, which Y accepts and returns it to X. X retains the bill till due date and Y pays on the due date. On payment of Y, ______ account will be credited in the books of Y.

1. Cash
2. Bills Payable
3. None of these
4. Bills Receivable

Q.

Which of the following accounts shall be debited in the books of drawee at the time of payment?

1. Bills payable account

2. Drawings account

3. Bank account

4. Drawer`s account

Q.

How do you prepare ledger entries?

Q.

Dani bought a total of $8$ pounds of peanuts and cashews.

Peanuts, $\mathrm{p}$, cost $\$2$ per pound and the cashews, $\mathrm{c}$, cost $\$5$ per pound.

The total amount Dani spent on the peanuts and cashews was $\$25$.

Which system of equations could be solved to find how many pounds of peanuts Dani bought $?$

1. $$\begin{gathered} 2\mathrm{p}+5\mathrm{c}=25 \\ \mathrm{p}+\mathrm{c}=8 \end{gathered}$$

2. $$\begin{gathered} 5\mathrm{p}+2\mathrm{c}=25 \\ \mathrm{p}+\mathrm{c}=8 \end{gathered}$$

3. $$\begin{gathered} 2\mathrm{p}+5\mathrm{c}=8 \\ \mathrm{p}+\mathrm{c}=25 \end{gathered}$$

4. $$\begin{gathered} 2\mathrm{p}=8 \\ 5\mathrm{c}=25 \end{gathered}$$

Q. Bank account is debited when a bill is sent to the bank for collection.

1. True
2. False

Q. When bill is retained ____________entry is passed.

1. Drawee A/c DR
   To Bill receivable A/c A/c
2. None of the above
3. Bill receivable A/c DR
   To Drawee A/c
4. Bill receivable A/c DR
   To Cash A/c

Q. When bill is transferred to creditor it is called ____________.

1. Retaining the bill
2. Discounting the bill
3. Endorsing the bill
4. Sending the bill to bank for collection

Q. lf a cheque received is further endorsed, it must be entered on both sides of the Cash Book.

1. True
2. False

Q. A bill payable on demand is called Time bill.

1. True
2. False