Practice Test

Q1) On 1.1.05 X draws a bill on Y for Rs.20,000 for 3 months due date of the bill will be : Show Answer

Q2) On the 15.08.05 X draws a bill on Y for Rs.20,000 for 3 months.18th Nov was a sudden holiday , due date of the bill will be. Show Answer

Q3) On the 16.06.05 X draws a bill on Y for Rs.25,000 for 30 days .19th July is a public holiday , due date of the bill will be. Show Answer

Q4) On 1.1.05 X draws a bill on Y for Rs.30,000 . X accepts the same on 4.1.05.period of bill 3 months after date .What will be the due date of the bill Show Answer

Q5) X draws a bill on Y .X endorses the bill to Z.The payee of the bill will be Show Answer

Q6) On 1.7.05 X draws a bill on Y for Rs.20,000 for 3 months after sight , date of acceptance is 6.10.05 .Due date of the bill will be : Show Answer

Q7) On 1.1.05 X draws a bill on Y for Rs.50,000 for 3 months X got the bill discounted on 4.4.05 at 12% rate. The amount of discounted bill will be : Show Answer

Q8) On 1.1.06 X draws a bill on Y for Rs.30,000 for 3 months X got the bill discounted on 4.2.06 at 12% rate. The amount of discounted bill will be : Show Answer

Q9) A bill of 12,000 was discounted by A with the banker for 11,800.At maturity ,the bill Returned dishonoured , noting charges Rs.20.How much amount will the bank deducted from A's bank balance at the time of such dishonour ? Show Answer

Q10) X sold goods to Y for Rs.1,00,000.Y paid cash Rs.30,000.X will grant 2% discounted on balance , and Y request X to draw a bill for balance ,the amount of bill will be Show Answer

Q11) On 1.1.05 X draws a bill on Y for Rs.20,000 for 3 months. The bill is discounted with banker at a charge of Rs.100 . At maturity the bill Return dishonoured .in the books of X,for dishonour , the bank account will be credited by Show Answer

Q12) On 1.1.05 X draws a bill on Y for Rs.10,000.At maturity Y requested X to renew the bill for 2 months at 12 % p.a.interest.Amount of interest will be Show Answer

Q13) On 1.1.05 X draws a bill on Y for Rs.15,000 for 3 months. At maturity Y requested X to accept Rs.5,000 in cash and balance to draw a fresh bill for 2 months together with 12% p.a.interest.Amount of interest will be Show Answer

Q14) On 1.8.05 X draws a bill on Y for 30 days after sight , the date of acceptance is 8.8.05 .Due date of the bill will be : Show Answer

Q15) On the 1.06.05 X draws a bill on Y for Rs.25,000 , At maturity Y requested X to accept Rs.5,000 in cash and noting charges incurred Rs.100, and the balance X draws a bill on Y for 2 months at 12% p.a.Interest amount will be Show Answer

Q16) On the 1.1.05 X draws a bill on Y for Rs.50,000 , At maturity , the bill Returned dishonoured as Y became insolvent and 40paise per rupee is recovered from his estate .The amount recovered is: Show Answer

Q17) X draws a bill on Y.X endorses the bill to Z .Y will pay the bill amount to Show Answer

Q18) On 1.4.01 Raj draws a bill on Aslam for Rs.60,000 for 2 months .Aslam accepts the bill and sends it to Raj who got the bill discounted for Rs.58,800.Raj immediately remits Rs.19,600 to Aslam .On due date ,Raj being unable to remit the amount due accepts a bill for Rs.84,000 for 2 months which is discounted by Aslam for Rs.82,200.aslam sends Rs.14,800 to Raj out of the same. How much amount of discounted bill will be borne by Raj at the time of 14,800 remittances Show Answer

Q19) Mr.B sold goods worth Rs.25,000 to Mr.N .N immediately accepted a bill on 1.11.01 , payable after 2 months .B discounted this bill @18 % p.a. on 15.11.01.On the due date N failed to discharge the bill .Later on N became insolvent and 50 paise is recovered from N's estate .How much amount of bad debt will be recorded in the books of B Show Answer

Q20) The purpose of accommodation bills Show Answer

Q21) M sold goods worth Rs.50,000 to Mr.N On 1.10.05.N immediately accepted a bill of 3 months .On the due date N requested that the bill be renewed for a fresh period of 3 months. N agreed to pay interest @18 % pea .in cash .How much interest to be paid in cash by N ? Show Answer

Q22) On 1.01.05 X draws a bill on Y for Rs.30,000 , At maturity Y requested X to draw a fresh bill for 2 months together with 12% p.a.Interest and noting charges incurred Rs.100, balance Interest amount will be Show Answer

Q23) On 18.02.05 X draws a bill on Y for Rs.10,000 for 30 days after sight , B accepted the bill on 21.2.05 .Due date of the bill will be : Show Answer

Q24) X sold goods to Y for Rs 30,000.1/2 of the amount will be received in cash and balance in B/R.For what amount X should draw the bill on Y Show Answer

Q25) A draws a bill on B for Rs.50,000 for 3 months ..At maturity ,the bill Returned dishonoured , noting charges Rs.500. 40 paisa in a rupee is recovered from B's estate .The amount of deficiency to be recorded on insolvency in the books of B will be Show Answer

Q26) A sold goods to B for Rs.20,000.A will grant 5% discount to B .B requested A to draw a bill. The amount of bill will be Show Answer

Q27) Fees paid in cash to notary public is charged by Show Answer

Q28) A draws a bill on B for Rs.50,000.A endorsed it to C in full settlement of Rs.50,500.Noting charges of Rs.200 as the bill Returned dishonoured .A wants to pay the amount to C at 2% discount The amount to be paid by A to C will be Show Answer

Q29) A draws a bill on B for Rs.1,00,000.A endorsed it to C .Noting charges of Rs.1,000 as the bill Returned dishonoured .B request A to accept the amount at 2 %discount by single Cheque . The cheque amount will be Show Answer

Q30) S draws 2 bills of exchange on 1.1.06 for Rs.3,000 and Rs.5,000 respectively .The bill of exchange for Rs.3,000 is for 2 months ,while the bill of exchange for Rs.5,000 is for Rs 3 months. These bills are accepted by K .On 4.3.06 K request S to renew the first bill with interest @ 18% pea for a period of 2 mts.S agrees to this proposal .On 20.3.06 K retires the acceptance for Rs.5,000 the interest rebate i.e., discount being Rs.50.Before the due date of the renewed bill k becomes insolvent and only 60 paise in a rupee can be recovered from his estate .How much bad debt will be recorded in the books of S : Show Answer

Q31) The promissory note should be signed by Show Answer

Q32) K draws a bill on S for Rs.3,000.K endorsed it to R ,R endorsed it to A .The payee of the bill will be Show Answer

Q33) A bill is drawn on 29th Jan ' 06 for 1 mts after date .The date of acceptance is 2nd Feb ' 06.the bill is drawn on 1 mts after date basis .the due date of the bill will be Show Answer

Q34) A accepted a bill drawn by B .B endorsed it to C . On due date the bill is dishonoured .as A became insolvent .to record the dishonor of the bill in the books of B , which of the following accounts should be credited Show Answer

Q35) Which of the following is true ? Show Answer

Q36) For mutual accommodations of A and B ,B accepted a bill drawn on him by A for 2 mts Rs.6,000.the said bill is discounted @ 12% p.a.and remitted 1/3rd of the proceeds to B .the amount remitted by A and B will be Show Answer

Q37) L draws an accommodations bill on S.The proceeds are to be borne between S and L in the ratio of 3:1 .the amount of bill Rs.6,000 , discounting charges Rs.120.Discounted borne by S will be Show Answer

Q38) A draws a bill on B for Rs.4,500 for mutual accommodation in the ratio 2;1 A got it discounted at 4,230 and remitted 1/3rd of the proceeds to B At the time of maturity ,how much amt A should remit to B such that B can pay off the bill Show Answer

Q39) R drew a bill on A for Rs.4,500 for mutual accommodation in the ratio 2;1 .A accepts the bill and sends it to R who got the bill discounted for Rs 4,230.and remits 1/3rd to A .Before due date ,R being unable to remit the amount drew a bill on R for Rs.6,300 on the same terms the 2nd bill was discounted for Rs.6,120.The first bill was honoured on the due date and a new amt. of Rs.1,080 was remitted to R by A.The proportionate discounted charges on both the bill will be borne by R is Show Answer

Q40) which of the following instrument is not a negotiable instrument Show Answer

Q41) On 1.5.06 X sold goods to Y for Rs 4,000 for 3 months On the same day ,he drew on Y a bill for the amount for 3 mts , which Y duly accepted X got the bill discounted with her bank before the due date y became insolvent .Later her estate could pay only 40% of the amount due what will be the amount of deficiency in the books of Y Show Answer

Q42) Which of the following is not a foreign bill : Show Answer

Q43) which of the following is correct for presenting bill to notary public Show Answer

Q44) X draws a bill on Y for Rs.50,000 for 3 months. Proceeds are to be shared equally .A got the bill discounted at 12% pea and remits required proceeds to B :The amount of such remittance will be: Show Answer

Q45) From the following information, find out who can draw the bill if Mr.A sold goods to B Show Answer

Q46) When the bill are to be produced to notary public Show Answer

Q47) Which of the following is false Show Answer

Q48) under which circumstances drawer and payee is same person Show Answer

Q49) Which of the following is true ? Show Answer

Q50) Which of the following is true ? Show Answer

Q51) Indian currency is a Show Answer

Q52) M sold goods worth Rs.1,600 to .N on 1.6.06.N immediately accepted a bill of 3 months .On the due date N requested that the bill be renewed for a fresh period of 2 months. M agreed to provide interest @ 9 % pa .in cash .How much interest in the books of M ? Show Answer

Q53) On 1.1.05 X draws a bill on Y for Rs.20,000 for 30 days ;, due date of the bill will be : Show Answer

Q54) R acceptance to D for Rs.8,000 renewed at 3 mts on the condition that Rs.4,000 be paid in cash immediately and the remaining amount will carry interest @ 12% pea .The amt of interest will be Show Answer

Q55) X draws a bill on Y for Rs.30,000 .X wants it to endorses the bill to Z. in settlement of Rs.35,000 at 2% discount with the help of Y's acceptance and balance in cash.how much cash X will pay to Y Show Answer

Q56) R get's G acceptance for Rs.12,000 discounted at 2mts @ 12% p.a..The amount of discount will be Show Answer

Q57) If on the due date is a public holiday ,what will be the due date of the bill Show Answer

Q58) MATCH THE PAIR : Noting charges Show Answer

Q59) the bills of exchange Show Answer

Q60) the fees charged by notary public is known as Show Answer

Q61) if due date is sudden holiday , due date of the bill will be. Show Answer

Q62) a promissory note is Show Answer

Q63) in case of a promisory note there are Show Answer

Q64) A bill of exchange is Show Answer

Q65) in case of a bills of exchange there are Show Answer

Q66) out of the following Bills , bill at sight is Show Answer

Q67) out of the following Bills , bill after date is Show Answer

Q68) A cheque is Show Answer

Q69) the term of a bill after sight commences Show Answer

Q70) the term of a bill after date commences Show Answer

Q71) acceptance is necessary in case of Show Answer

Q72) A bill drawn on 23.11.2005 as payable 2 months after date was accepted on 24.11.2005.The date of maturity of the bill will be Show Answer

Q73) A bill drawn on 23.11.2005 as payable 2 months after sight was accepted on 24.11.2005.The date of maturity of the bill will be Show Answer

Q74) A bill drawn on 23.11.2005 as payable 60 days after date was accepted on 24.11.2005.The date of maturity of the bill will be Show Answer

Q75) when the bill is honoured at the maturity date , the drawee debits Show Answer

Q76) no entry for payment of bill at maturity is passed in the books of the drawer Show Answer

Q77) in case of dishonour of a discounted bill , nothing charges are initially paid by Show Answer

Q78) in case of dishonour of a bill sent for collection to a banker , nothing charges are initially paid by Show Answer

Q79) in the case of dishonour of an endorsed bill , nothing charges are initially paid by Show Answer

Q80) A discounted bill is treated as dishonoured in case of insolvency of the Show Answer

Q81) days of grace are added to Show Answer

Q82) all the entries from B/R Journal are to be individually posted in Show Answer

Q83) total of bills payable journal is posted to the Show Answer

Q84) when an accommodation bill is discounted & the amount received is shared by the two parties ,the discount is borne by the Show Answer

Q85) A bill given to a creditor is called Show Answer

Q86) A bill given to a debtor is called Show Answer

Q87) A promissory note can be made payable to Show Answer

Q88) A bill of exchange can not be made payable to Show Answer

Q89) discount at the time of retirement of a bill is Show Answer

Q90) when the bill is renewed Show Answer

Q91) which of the following is correct ? Show Answer

Q92) which of the following is false ? Show Answer

Q93) X draws a bill on Y on 1.1.07 for Rs.20,000 for 30 days .what will be the maturity date of the bill Show Answer

Q94) on 10.9.07 X draws a bill on Y for 3 months for Rs,20,000 .13th dec. was a sudden holiday , due date of the bill will Show Answer

Q95) on 10.9.07 X draws a bill on Y for 3 months for Rs,20,000 .13th dec. was a public holiday , due date of the bill will Show Answer

Q96) X sold goods to Y for Rs.2,00,000.Y paid cash Rs.50,000.X will grant 2% discounted on balance , and Y request X to draw a bill for balance ,the amount of bill will be Show Answer

Q97) X sold goods to Y for Rs.2,00,000. 1/2 amount will be received in cash & balance in B/R .For what amount X should draw the bill on Y Show Answer

Q98) A sold goods to B for Rs.1,50,000.A will grant 5% discount to B .B requested A to draw a bill. The amount of bill will be Show Answer

Q99) on 1.1.07 X draws a bill on Y for Rs.1,50,000 for 3 mts .X got the bill discounted on 4.1.07 at the rate of 12% p.a. The amount of discount on bill will be Show Answer

Q100) Mr.A draws a bill on Mr.Y for Rs.1,50,000 on 1.1.07 for 3 mts .On 4.2.07 X got the bill discounted at the rate of 12% p.a. The amount of discount on bill will be Show Answer

Q101) X got Y's acceptance for Rs.1,50,000 discounted at Rs.2 mts at Rs.12% p.a.The amount of discount will be Show Answer

Q102) X draws a bill on Y for Rs.1,50.000 for 3 mts on 1.1.07.the bill is discounted with the banker at a charge of Rs.4,500.At maturity the bill return dishonoured .in the books of X for dishonour ,the bank account will bee credited by Show Answer

Q103) A bill of Rs.1,50,000 was discounted by A with the banker of Rs.1,45,500 .at maturity ,the bill returned dishonoured , noting charges Rs.200 .how much amount will the bank deduct from A's bank balance at the time of such dishonour ? Show Answer

Q104) X draws a bill in Y & got the bill discounted with the bank , Y will pay the amount of the bill to Show Answer

Q105) On 1.1.07 X draws a bill on Y for Rs.1,50,000. At maturity ,the bill returned dishonoured as Y become insolvent & 40 paise per rupee is recovered from his estate. the amount recovered will be Show Answer

Q106) A draws a bill on B for Rs.1,50,000 for 3 mts .At maturity ,the bill returned dishonoured,nothing charges Rs.1,500 .40 paise in a rupee is recovered from B's estate .the amount of deficiency to be recovered on insolvency in the books of B will be Show Answer

Q107) X sold goods to Y for Rs.1,50,000 on 1.5.07 .On the same day ,he drew on Y a bill for 3 mts .which Y duly accepted .X got the bill discounted with the bank before due date Y became insolvent. later his estate could pay only 40 % of the amount is due . what will be the amount of deficiency in the books of Y Show Answer

Q108) X draws a bill on Y .X endorsed the bill to Z .the payee of the bill will be Show Answer

Q109) X accepted a bill drawn by Y who endorsed the bill to Z .on the due date ,the bill is dishonoured .To record the dishonor of the bill in the books of Y ,which of the following accounts should be credited ? Show Answer

Q110) A draws a bill on B for Rs.1,50,000. A endorsed it to C in full settlement of Rs.1,51,500 , Noting charges of Rs.600 as the bill returned dishonoured .A wants to pay the amount to C at 2% discount.the amount to be paid by A to C will be Show Answer

Q111) A draws a bill on B for Rs.1,50,000. A endorsed it to C.The bill return dishonoured , Noting charges of Rs.1,500 B request A to accept the amount at 2% discounted by a single cheque .the cheque amount will be Show Answer

Q112) A draws a bill on B for Rs.1,50,000. A wants it to endorsed it to C in full settlement of Rs.1,75,000 at 2% discount,with the help of B's acceptance & balance in cash..how much cash A will pay to B? Show Answer

Q113) X drew a bill on Y for Rs.3,000 . X endorsed it to Z who endorsed it to W .The payee of the bill will be Show Answer

Q114) X drew a bill on Y for Rs.1,50,000 . X endorsed it to Z ,Y will pay the amount of the bill to Show Answer

Q115) On 1.1.07 X drew a bill on Y for 3 months for 1,50,000.On 4.3.07 Y pay the bill to X at 12% p.a .discount ,the amount of discount will be Show Answer

Q116) X draws a bill on Y for Rs.1,50.000 on 1.1.07.Rs..At maturity Y request X to renew the bill for 2 mts at 12% p.a interest .amount of interest will be Show Answer

Q117) On 1.1.07 X draws a bill of exchange for Rs.1,50,000 due for payment after 3 months on Y who accepts this bill of exchange .On 4.3.07 , Y retires the bill of exchange at a discount of 12% p.a .which of the discount is correct for premature payment in the books of Y Show Answer

Q118) On 1.1.07 X draws a bill of exchange for Rs.1,50,000 due for payment after 3 months on Y. At maturity Y request X to accept Rs.50,000 in cash & for balance to draw a fresh bill for 2 mts together with interest 12% p.a ,amount of interest will be. Show Answer

Q119) On 1.6.07 X draws a bill of exchange for Rs.25,000 due for payment on Y. At maturity Y request X to accept Rs.5,000 in cash & noting charges incurred Rs.100 & for the balance X draws a fresh bill for 2 mts together with interest 12% p.a ,amount of interest will be. Show Answer

Q120) M sold goods worth of Rs.1,50,000 to N .On 1.10.07 , N immediately accepted a three month bill.On due date N request that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a.in cash .How much interest to be paid in cash by N ? Show Answer

Q121) On 1.1.05 X draws a bill on Y for Rs.1,50,000 .At maturity Y request X to draw a fresh bill for 2 mths together with 12%p.a interest.,Nothing charges Rs.500.The amount of interest will be Show Answer

Q122) X's acceptance to Y for Rs.1,50,000 renewed at 3 months on the condition that Rs.75,000 be paid in cash immediately & the remaining amount will carry interest @ 12% p.a .The amount of interest will be Show Answer

Q123) X sold goods to y for Rs.1,50,000 on 1.6.07.Y immediately accepted a 3 mts bill.on due date Y requested that the bill be renewed for a fresh period of two months .X agrees provided interest @ 9% p.a.paid immediately in cash .what will be the amount of interest in the books of X ? Show Answer

Q124) X sold goods to Y for Rs.1,50,000.Y immediately accepted a bill on 1.11.07 payable after 2 mts .X discounted this bill @ 18% p.a .on 15.11.07.On the due date Y failed to discharge the bill .later on Y became insolvent & 50 paise is recovered from Y's estate .how much of bad debts will be recorded in the books of X Show Answer

Q125) X draws & accommodation bill on Y .the proceeds are to be borne between Y & X in the ratio of 3:1.the amount of bill Rs.60,000, ,discounting charges Rs.1,200.Discount borne by Y will be Show Answer

Q126) A draws a bill on B for Rs.45,000 for mutual accommodation in the ratio 2:1.A got it discounted at Rs.42,300 & remitted 1/3rd of the proceeds to B .At the time of maturity ,how much amount A should remit to B such that B can pay off the bill ? Show Answer