MCQ Questions for Class 11 Accountancy Chapter 8 Bills of Exchange with Answers

Choose the correct alternative in the following
Question 1.
Bills receivable account is a:
(a) Nominal account
(b) Personal account
(c) Real account

Answer

Answer: (c) Real account


Question 2.
At the time of retirement of a bill, the acceptor debits:
(a) Bills payable’account
(b) Discount account
(c) Neither of two

Answer

Answer: (a) Bills payable’account


Question 3.
At the time of endorsement of a bill, the drawee debits:
(a) Bills payable account
(b) Other party ’s account
(c) No entry

Answer

Answer: (c) No entry


Question 4.
When a bill is discharged, the acceptor debits:
(a) Creditor’s account
(b) Cash account
(c) Bills payable account

Answer

Answer: (c) Bills payable account


Question 5.
When noting charges are paid by the bank at the time of dishonour of the bill and the drawee credits:
(a) Bank account
(b) Noting charges account
(c) Neither of the two

Answer

Answer: (c) Neither of the two


Question 6.
The due date of bill dated 1st February, 2003 for a period of 2 months shall be:
(a) 4th April, 2003
(b) 5th April, 2003
(c) 4th May, 2003
(d) 2nd February, 1993

Answer

Answer: (a) 4th April, 2003


Question 7.
The due date of bill dated 31st January, 1992 for a period of 1 month will be: (year 1992 is a leap year)
(a) 1 st October, 1993
(b) 31 st January, 1992
(c) 31st January, 1993
(d) 3rd March, 1992

Answer

Answer: (d) 3rd March, 1992


Question 8.
Accommodation bills are also termed as …………. bills.
(a) Drawee bills
(b) Kite bills
(c) Payee bills
(d) Drawer bills

Answer

Answer: (b) Kite bills


Question 9.
What shall be the due date of bill dated 21st July, 1993 for a period of 60 days when 22nd September, 1993 is declared as emergency holiday?
(a) 21 st September, 1993
(b) 22nd September, 1993
(c) 23rd September, 1993
(d) None of these

Answer

Answer: (c) 23rd September, 1993


Question 10.
B/R stands for
(a) Bank Receivable Books
(b) Bank Receipt
(c) Bank Rebate
(d) All of them

Answer

Answer: (a) Bank Receivable Books


Fill in the blanks with suitable word(s)

Question 1.
The person to whom the amount mentioned in the promissory is payable is known as ………………….

Answer

Answer: Promisee


Question 2.
Transfer of a negotiable instrument to another person by signing on it, is known as ……………….

Answer

Answer: Endorsement


Question 3.
In a promissory note, the person who makes the promise to pay is called as ……………..

Answer

Answer: Promissor


Question 4.
A person who endorses the promissory note in favour of another is known as ………………

Answer

Answer: Endorser


Question 5.
A bill of exchange is a …………….. instrument.

Answer

Answer: negotiable


Question 6.
A bill of exchange is drawn by the …………….. upon his ………………

Answer

Answer: drawer, drawee


Question 7.
A promissory note is drawn by ………………. in favour of his …………………

Answer

Answer: debtor, creditor


Question 8.
There are ………………. parties to a bill of exchange.

Answer

Answer: three


Question 9.
There are ………………… parties to a promissory note.

Answer

Answer: two


Question 10.
Drawer and ………………… cannot be the same parties in case of a bill of exchange.

Answer

Answer: drawee


Question 11.
Bill of exchange in Indian language is called ……………..

Answer

Answer: Hundi


Question 12.
…………….. days of grace are added in terms of the bill to calculate the date of its ………………….

Answer

Answer: Three, maturity


Write ‘True’ or ‘False’ against each statement regarding a bill of exchange

Question 1.
A bill of exchange must be accepted by the payee.

Answer

Answer: False


Question 2.
A bill of exchange is drawn by the creditor.

Answer

Answer: True


Question 3.
A bill of exchange is drawn for all cash transaction.

Answer

Answer: False


Question 4.
A bill payable on demand is called Time bill.

Answer

Answer: False


Question 5.
A person to whom payment is to be made in a bill or exchange is called payee.

Answer

Answer: True


Question 6.
A negotiable instrument does not require the signature of its maker.

Answer

Answer: False


Question 7.
The hundi payable at sight is called Darshani hundi.

Answer

Answer: False


Question 8.
A negotiable instrument is not freely transferable.

Answer

Answer: False


Question 9.
Stamping of promissory note is not mandatory.

Answer

Answer: False


Question 10.
The time of payment of a-negotiable instrument need not be certain.

Answer

Answer: True


 


0 Comments

Leave a Reply

Avatar placeholder

Your email address will not be published. Required fields are marked *