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Bills of Exchange Class 11 MCQs Questions 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
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