MCQs For NCERT Class 11 Chapter 8 Bill of Exchange

Please refer to the MCQ Questions for Class 11 Accountancy Chapter 8 Bill of Exchange with Answers. The following Bill of Exchange Class 11 Accountancy MCQ Questions has been designed based on the latest syllabus and examination pattern for Class 11. Our experts have designed MCQ Questions for Class 11 Accountancy with Answers for all chapters in your NCERT Class 11 Accountancy book.

Bill of Exchange Class 11 MCQ Questions with Answers

See below Bill of Exchange Class 11 Accountancy MCQ Questions, solve the questions and compare your answers with the solutions provided below. 

 Question. If due date of bill falls on a Public holiday then the maturity date is on
a. Next day of the Maturity date
b. A day before the Maturity date
c. On maturity date
d. After three days

Question. A Bill drew on 14th May 2018 for 90 Days due date is
a. 12th Aug. 2018
b. 13th Aug. 2018
c. 14th Aug 2018
d. 15th Aug 2018

Question. A bill of exchange must be in
a. Writing
b. Orel
c. Registered
d. All of the above

Question. At the time of renewal of the bill interest is charged for the period of
a. Three month
b. Six Month
c. Original bill
d. Fresh bill

Question. A bill drew on 31 May 2018 for one month due date is
a. 1st July 2018
b. 2nd July 2018
c. 3rd July 2018
d. 4th July 2018

Question. The rebate on a Bill Shown that
a. It has been paid before the date of maturity
b. It has been paid After the date of maturity
c. It has been paid On the date of maturity
d. It has been dishonoured

Question. If Pankaj’s acceptance which was discounted from bank is dishonoured then the amount will be debited in our books
a. Pankaj
b. Bank
c. Bills Receivable account
d. None of the above

Question. If Pankaj’s acceptance which was endorsed to Mrs Jivika is dishonoured then the amount will be debited in our books
a. Pankaj
b. Jivika
c. Bills Receivable account
d. None of the above

Question. If Sohan’s acceptance which was discounted from bank is dishonoured then the amount will be credited in our books
a. Sohan
b. Bank
c. Bills Receivable account
d. None of the above

Question. If Mohan’s acceptance which was endorsed to Mrs Jivika is dishonoured then the amount will be Credited in our books
a. Mohan
b. Jivika
c. Bills Receivable account
d. None of the above

Question. The bills payable book is part of
a. Journal
b. Ledger
c. Trial balance
d. Balance sheet

Question. Noting charges Account is debited by
a. Drawer
b. Drawee
c. Payee
d. Notary public

Question. Rebate is calculate for the period of
a. Drawing date to Maturity day
b. Payment day to Maturity day
c. Drawing date to Payment date
d. None of the above

Question. Which one is Negotiable instruments
a. Bill of exchange
b. Promissory Note
c. Bankers cheque
d. All of the these

Question. A bill draw on 27th Dec.2018 for two months due date is
a. 27th Feb. 2019
b. 1st Mar. 2019
c. 2nd Mar. 2019
d. None of above

Question. Mr. X sold goods to Mr. Y on Apr 1, 2019 and accepted a bill of Rs. 18,000 for 3 months on Same Day. On 2nd July, 2019 Y requested to draw a new bill for 2 months with interest @6% p.a. amount of interest will be
a. 1080
b. 270
c. 180
d. 90

Question. If Drawer transfer the bill before maturity date is known
a. Renewal of a bill
b. Dishonour of a bill
c. Retirement of a bill
d. Endorsement of a bill

Question. If on due date Drawee unable to pay bill
a. Renewal of a bill
b. Dishonour of a bill
c. Retirement of a bill
d. Endorsement of a bill

Question. A Bill draw on 10 July 2018 for 90 Days due date is
a. 9th Oct. 2018
b. 10th Oct. 2018
c. 11th Oct. 2018
d. 12th Oct. 2018

Fill In The Blanks.

Question. Bill is kept by drawer till maturity the payment will go to………

Question. Ram makes a promise to pay Rs.20,000 to Mohan after 1 month through …………..(Negotiable instrument).

Question. Due to acceptance of Bill of Rs.5000 from Ram such transaction not affected ……….position of Ram.

Question. …….a/c is debited for Noting charges.

Question. Sold goods to Rani Rs.5000 ,Trade Discount @10%, cash discount @2%, a bill drawn for one month for dues of Rs………..

Question. Bills of exchange are governed by………………… act

Question. If the bill is endorsed in the favour of creditor then there will ………. in the books of drawer.

Question. A bill was drawn on 12th of July for one month then maturity date will be …….

Question. Drawee may have to pay …….to drawer for the extended period 

Question. Discount offered by the holder of bill to get payment prior to maturity date is known as……?

Question. A bill was drawn on Aug 21, 2018 for one month, if maturity date is declared emergency holiday then due date will be…………

Question. Vandna shows inability to pay her acceptance of Rs…………and accepted a new bill of Rs. 11,165 along with interest @6% (due after 3 months)

Question. Bills of exchange are drawn by……… 

Question. Transferring the right of bills receivable is called as…………

Question. If maturity date of bill is unforeseen holiday then maturity date will be……

Question. Drawers can……………the bill to get instant payment of bill.

True/False. 

Question. Maturity date of a particular bill is 27th September and on that date strike on such state. So due date will be 28 September of next working day.

Question. Single entry system is not approved by company’s Act 2013.

Question. Signing and transferring the bill is called endorsement of bill.

Question. This entry is passed in the book of acceptor on dishonoured of bill.

 Question. Maturity date for a bill written on 28 Nov 2015 for three months and 28 January 2016 for one month will be same i.e.2nd March.

Question. Bill draws on 1 January for 20 days then due date will be 24 January.

Question. Bill draws on 1 January for 22 days then due date wil be 26 January

Question. A person who draws the bill is called drawee.

Question. Bill draws on 28 January for 3 months then due date will be 1 May.

Question. The promise to make payment must be unconditional. For example,” I promise to pay Rs. 10,000 as soon as possible”.

Question. A bill for 40,000 was discounted by Ganesh with Axis Bank for Rs.38,500. At maturity, the bill was dishonoured and bank notified it for Rs.600. Rs. 40,600 deducted by bank from the Ganesh Bank balance.

Question. A bill for Rs.75,000 is discounted with the bank for Rs.72,000. The bill is dishonoured at maturity. The drawee pays 40% in full settlement. Then amount of bad debts was 45500.

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

Question. Ram says Shyam to pay particular sum of money to him. In this oral transaction negotiable instrument Act applied.

Question. Dharma draws a bill on Hema. Hema failed to pay amount, now the burden of noting charges will be on Dharam.

Question. A bill payable on demand is called bill at sight.

Question. Negotiable instrument Act 1981 govern the transactions of bill of exchange.

Question. Bill of exchange may be in oral or written form.

Match The Following

Question. Identify–

i) Drawer is also known as	a) Endorser
ii) Endorsee is also known as	b) Holder of the bill
	c) Both a & b

Question. Identify–

i) Days of grace are not allowed when	a) It is a bill payable on demand
ii) Days of grace are allowed when	b) It is a bill after sight
	c) It is a national holiday

Question. Identify–

i) On the basis of place, type of bill of exchange is	a) Foreign bill
ii) On the basis of time, type of bill of exchange is	b) Trade bill
	c) On demand
	d) Accommodation bill

Question. Identify–

i) Due date of a bill is calculated from the date of acceptance	a) Term bill
ii) Due date of a bill is calculated from the date of drawing the bill	b) Inland bill
	c) Bill after sight
	d) Bill after date

Question. Identify–

i) When bill is encashed before date of maturity is known as	a) Endorsement of bill
ii) when bill is transferred to 3rd party before date of maturity is	b) Dishonour of bill
	c) Discounting of bill

Question. Identify–

i) The lawyer performing the work of noting the bill is called	a) Notary Public
ii) The Lawyer performing the work of noting the bill is officially appointed by	b) Government
	c) Holder of the bill
	d) Govt. Lawyer

Question. Identify–

i) The process of cancelling the one bill & issuing a another bill is known as	a) Renewal of bill
ii) The process of encashing the one bill before the date of maturity is known as	b) Rebate of bill
	c) Discounted of Bill

Question. Identify–

i) An order to make a payment is called	a) Promissory Note
ii) An promise to pay the payment is called	b) Bills of Exchange
	c) Neither A or B

Question. Match the due dates of bill of exchange–

i) 1st March for two months	a) 3rd November
ii) 12th July for one month	b) 4th May
	c) 14th August

Question. What will be the correct journal entry?

i) If bill is retained by drawer till due date and realised on maturity	a) Dr. Bank and Discounted a/c Cr. Bills receivable a/c
	b) Dr. Cash a/c and Cr. Bills Receivable a/c
	c) Dr. Bills payable a/c and Cr. Cash a/c

Question. Identify the correct discounting charges A bill of Rs. 15000 is drawn for 3 months and discounted by bank on same day

i) @ 12% P.A	a) Rs. 2250
ii) @ 15%	b) Rs. 563
iii) @ 12%	c) Rs. 450
iv) @15% P.A.	d) Rs. 1800

Question. Identify the correct one Ram is a drawee to Ramesh for Rs. 10000 he-

i) is unable to pay on maturity date	a) Discounted the bill
ii) has paid before the maturity date	b) Renewal of bill
	c) Rebate on bill

Question. Identify the correct one A drew four bills on B respectively on 31st January, 28thFeburary, 31st March and 30th April, but all are payable after one month. What will be the correct due dates-

i) 3rd March	a) i,ii, iii, iv
ii) 3rd April	b) ii, iv, i, iii
iii)3rd May	c) iii, i, iv, ii
iv) 3rdJune	d) iv, iii, ii, i

Question. Identify-

i) On dishonour of bill the entry in the books of drawee is	a) Dr. Debtors a/c and Cr. B/R a/c
ii) On dishonour of bill the entry in the books of holder of bill (endorsee)	b) Dr.Bank a/c and Cr. B/P a/c
	c) Dr. Debtors a/c and Cr. B/P a/c