CHAPTER 8 : Bills of Exchange NCERT MCQ CLASS 11TH ACCOUNTS | EDUGROWN

NCERT MCQ ON Bills of Exchange:

Question 1.
Bills receivable account is a:
(a) Nominal account
(b) Personal account
(c) Real account

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 twoAnswer

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 entryAnswer

Answer: (c) No entry

---

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

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 twoAnswer

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, 1993Answer

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, 1992Answer

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 billsAnswer

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 theseAnswer

Answer: (c) 23rd September, 1993

---

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

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

---