Bank cheques and bank drafts are useful for trading in

Medium scale transactions

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Small scale transactions

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Large scale transactions

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Large scale transactions

Banks provide timely financial assistance to traders and industrialists. Large scale transactions would be quite impossible without cheques and bank drafts.

Suggest Corrections

Similar questions

Q. Q. Which one of the following land revenue settlements resulted in large scale benami transactions?

Q. Which type of bank account do businessmen who have a large number of business transactions with banks use?

Q. The following are the transactions of Kamal, Delhi for the month of July, 2017:
(All cheques are paid into the Bank on the day received.)

2017
July 1	Started business with ₹ 1,00,000 as capital, of which ₹ 70,000 was by cheque deposited into bank
	Bought goods from S. Raj, Delhi ₹ 10,000 less Trade Discount 10%*
July 2	Sold goods to R. Mukherjee, Kolkata ₹ 5,000**
July 4	Goods returned to S. Raj ₹ 3,000 and paid him by cheque ₹ 6,800 (discount allowed ₹ 256)
July 5	Goods purchased from D. Seth, Patna ₹ 20,000**
	Bought old Computer for cash for office use ₹ 5,000
July 6	Goods returned by R. Mukherjee ₹ 2,000
	Bought goods from Rahul, Delhi ₹ 5,000 and paid by cheque*
July 8	Sold goods to D. Dass, Kolkata ₹ 10,000 less Trade Discount 5%**
July 9	Bought goods from M. Dey, Kolkata ₹ 15,000 less trade discount 5%**
	Sold goods to R. Mukherjee, Kolkata ₹ 12,000**
	Goods returned by D. Dass ₹ 3,000.
July 10	Cash withdrawn by Kamal for household expenses ₹ 2,500
July 11	Received from R. Mukherjee ₹ 8,600 (discount allowed ₹ 400)
July 14	Cash sales ₹ 3,300*
	Sold goods to T. Rana, Delhi ₹ 20,000*
	Bought goods from D. Seth, Patna ₹ 12,000**
July 17	Sold goods to D. Dass, Kolkata ₹ 10,000**
	Paid by Cheque to D. Seth ₹ 9,000 (discount allowed ₹ 500)
July 20	Goods purchased from M. Dey, Kolkata ₹ 6,000**
	Cash received from T. Rana ₹ 13,000 (discount allowed ₹ 500)
July 25	Cash deposited into bank ₹ 3,500
	Goods returned to M. Dey ₹ 4,000 out of purchase made on 9th July
July 28	Sold goods to T. Rana, Delhi ₹ 15,000*
	Goods taken by Kamal for personal use ₹ 2,500. These goods were purchased from Rahul.
July 31	Paid wages ₹ 480
	T. Rana became insolvent and 50 paise in the rupee realised from his estate.

Transaction marked* are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked** are inter-state transactions subject to IGST @ 12%.
Pass above transactions through suitable books of original entry. Post them to Ledger accounts and draw up a Trial Balance.

Q. The letter of credit is issued for transactions, and bank guarantee is issued for transactions.

Q. What type of bank accounts are best for everyday transactions?

Join BYJU'S Learning Program

Bank cheques and bank drafts are useful for trading in

The correct option is C Large scale transactions Banks provide timely financial assistance to traders and industrialists. Large scale transactions would be quite impossible without cheques and bank drafts.

The correct option is C
Large scale transactions

Banks provide timely financial assistance to traders and industrialists. Large scale transactions would be quite impossible without cheques and bank drafts.