Account class 11 Bills of Exchange

1. Bills of exchange is an unconditional promise to pay.

2. Bills of exchange is a conditional order to pay.

3. Drawer and payee can be the same person in a case of a bill of exchange.

4. There are two parties in the bill of exchange.

5. A promissory note is drawn and signed by debtor.

6. A promissory note has only two parties, the drawer and the payee.

7. A promissory note cannot be made payable to the bearer.

8. Acceptance is necessary in case of a promissory note.

9. The liability of the drawer for the payment of a promissory note is primary.

10. In case of a public holiday the due date of the bill falls one day later.

11. The date of maturity of an “after date” bill is calculated from the date of drawing the bill.

12. The date of maturity of an “after sight” bill is calculated from the date of acceptance of the bill.

13. A bill from the point of view of a creditor is called a bill receivable.

14. At the time of renewal of a bill, interest account is credited in the books of the drawee.

15. No entry is passed in the books of drawee when the bill is either discounted or endorsed.

16. When the bill is renewed, the original bill need not be cancelled.

17. In case of dishonor of bill, noting charges are initially paid be drawee.

18. In case of dishonor, the drwaee always debits bills payable account and credits drawers account.

19. In case of dishonor, the drawer always debits the account of drawee whether the bill is retained, endorsed or discounted.

20. The bill is treated as dishonored in case of insolvency of the drawee.

21. Accommodation bills are drawn without consideration.

22. Aman draws a bill on bimal for Rs 60,000. Aman wants to endors it to chirag in settlement of Rs 70,000 at 2% discount with the help of bimal acceptance and balance in cash. how much cash aman will pat to bimal?

23. What account will be credited when discounted bill is dishonored?

24. Nothing charges are ultimately borne by ;

25. Liabilities for a discounted bills is a

26. If the due date of a bill falls on a public holiday then the bill due is on ;

27. Which account will be debited in the books of acceptor at the time of discharge of a bill ?

28. X drew a bill on on Y for Rs 20,000 for 3 month on 1/1/2017. The bill was discounted with banker at a charge of Rs 100. At maturity the bill was returned dishonored, the bank paid Rs 100 as noting charges. The bank account will be credited, in the books of X, for dishonor with ;

29. On 13/07/2017 X draws a bill on Y for Rs 25,000 for 30 days. The due dates of the bill will be ;