Retiring the Bill

Q.

Retiring a bill under rebate means ?

1. Dishonoring th bill

2. None of the above

3. Making payment of the bill after the due date

4. Making payment of the bill before the due date

Q.

If the amount of a bill of exchange is paid before due date it is called

1. Discounting of bill

2. Dishonor of the bill

3. Renewal of the bill

4. Retiring the bill

Q.

Can we allow expenses/ fixed assets in purchase vouchers?

Q.

Give the meaning of rebate.

Q.

A retires a bill for Rs. 1000 drawn on him by B for rebate of Rs. 10. By what cash amount should be credited in the books of B?

1. Rs. 990

2. Rs. 995

3. Rs. 1, 000

4. Rs. 1, 010

Q.

Nikhil sold goods for Rs. 23, 000 to akhil on December 1, 2010. He drew upon Akhil a bill of exchange for the same amount payable after 2 months. Akhil accepted the bill and sent it back to Nikhil. Nikhil Discounted the bill immediately with his bank at the rate of 12% per annum. ON the due date, Akhil dishonoured the bill of exchhange and the bank paid Rs. 100 as noting charges. Akhil requested Nikhil to draw a new bill upon him with interest at the rate of 10% per annum which he agreed. The New bill was payable after two months. A week before the maturity of the second bill Akhil requested Nikhil to cancel the second bill. He further requested to accept Rs. 10, 000 in cash immediately and drew a third bill upon him including interest of Rs 500 Nikhil agreed to Akhil request. The third bill was payable after one month. Akhil met the third bill on its maturity. Record the necessary Journal entries in the books of Nikhil and Akhil and also prepare Akhil's account in the books of Nikhil and Nikhil's account in the books of Akhil.

Q. If the bill of exchange is honored before the maturity date, it is called the bill.

1. discounting
2. prehonoring
3. renewing
4. retiring

Q.

Cancelling an old bill and drawing a new bill is called renewal of a bill. Do you agree?

Q.

On 01.01.2012, A draws a bill on B for 3 months for Rs. 10, 000. On 04.03.2012, B pays the amount due to A before maturity at 12% discount. The amount of rebate will be _________.

1. Rs. 100

2. Rs. 300

3. Rs. 200

4. Rs. 400

Q.

On January 15, 2011, Raghu sold goods worth Rs. 35, 000 to devendtra and dreq upto the latter three bills of exchanges. The first bill was for Rs. 5, 000 payable after one month the second bill was For Rs. 20, 000 Payable after three months and third bill for balance amount for 4 months. Raghu endrosed the first bill in favour of his creditor, Dewan in full settlement of a debt of Rs. 5, 200. The second bill was discounted by Raghu at the rate of 6% per annum and the dishonoured the bill on maturity and the bank paid Rs. 30 as noting charges. Four days before the maturiey of hte third bill Raghu, sent the same for collection to his bank. The third bill was also dishonoured by Devendra and the bank paid Rs. 200 as noting charges. Five days after the dishonour of the bill. Devendra paid the entire amount due to RAghu along with interest Rs. 1, 000 for this purpose Devendra obtained a short term loan from his bank.
You are requested to record the necessary Journal entries in the Books of Raghu, Devendra and Dewan and also prepare Devendra's account in Raghu's Book and Raghu's account in Devendra's Book.

Q.

Lilly sold goods to Methew on 01.03.2011 for Rs. 12, 000 and drew upon Methew a bill of exchange for the same amount payable after two months. Lilly immediately discounted the bill with her bank at 9% per annum. The maturity date of the bill was a non-business day (holiday), therefore, Lilly had to present the bill as per the provisions of the Indian Instruments Act 1881. The bill was dishonoured by Methew and Lilly paid Rs. 45 as noting charges. Methew settled the claim of Lilly five days afer the dishonour of the bill by a cheque, which includes interest at the rate of 12% for the term of the bill.
Journalise the above transactions in the books of Lilly and Methew and prepare Methew's account in the books of Lilly and Lilly's account in the books of Methew.

Q. In case of retirement, rebate is a revenue for .

1. drawer
2. acceptor
3. banker
4. agent

Q. Which of the following account will be credited in the books of creditor, when acceptor retires his acceptance under rebate?

1. Bills Payable

2. Bills Receivable

3. Creditor
4. None of the above

Q. Bank account and ___ account will be debited in the books of drawer, when acceptor retires his acceptance under rebate.

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

Q. On 1.1.2016, X draws a bill on Y for Rs. 20, 000 for 3 months. Y retire the bill under a rebate of 18% p.a. 1 months before maturity. Rebate amount will be:

1. Rs. 3, 600

2. Rs. 400

3. Rs. 150

4. Rs. 300

Q.

In case of retirement, rebate is an expense for ?

1. Holder

2. Banker

3. Acceptor

4. Agent

Q.

In case of retirement, rebate is a revenue for ?

1. Holder

2. Acceptor

3. Banker

4. Agent

Q. Question

Q.

Mr. Ashok (drawee) retires his acceptance under rebate of Rs. 400, rebate a/c will be debited in the books of Ashok.

1. True
2. False