Skip to content
p.paperbanao.
Continue

Punjab (PTB) · Chapter test · Free

1st Year Principles of Accounting Chapter 6 TestAccounting For Bills Of Exchange

30 marks · 40 minutes · 21 questions. Covers: CHAP 6: Accounting For Bills Of Exchange.

Your school name

1st Year Principles of Accounting Chapter 6 Test

1st Year · Principles of Accounting · Punjab (PTB)

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 30Time: 40 minutes

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

  1. A trader whose assets exceed from his liabilities is called:

    1. Debtor

    2. Creditor

    3. Solvent

    4. Insolvent

  2. Accommodation bills are drawn, accepted and endorsed:

    1. Without any consideration

    2. For quarter consideration

    3. For some consideration

    4. None of these

  3. A bill from the point of view of a debtor is called:

    1. Bill acceptable

    2. Bill receivable

    3. Bill payable

    4. None of these

  4. The person to whom the bill is transferred will become:

    1. Endorser

    2. Creditor

    3. Debtor

    4. Endorsee

  5. A bill of exchange is defined under Bills of exchange Act:

    1. 1982

    2. 1882

    3. 1906

    4. 1932

  6. When a drawer discounts the bill, he gets:

    1. Less than face value

    2. More than face value

    3. Equal to face value

    4. None of these

  7. Retiring a bill under rebate means:

    1. Payment of bill before due date

    2. Making payment for the bill after due date

    3. Discounting bill

    4. Dishonored bill

  8. If the drawer is in need of money and cannot wait till due date and receive the money from bank is called:

    1. Retirement of bill

    2. Endorsement of bill

    3. Discounting of bill

    4. Dishonor of bill

  9. Interest on renewal of a bill is an expense to the:

    1. Acceptor

    2. Drawer

    3. Endorsee

    4. Endorser

  10. When the bill is dishonored acceptor’s account is debited in the books of the:

    1. Bank

    2. Endorsee

    3. Drawee

    4. Drawer

Q2. Short questions (Attempt any 6 of 8 · 6 × 2 = 12)

  1. Define cross cheque.

  2. Define drawee.

  3. What is meant by negotiable instruments?

  4. What is meant by acceptance of bill of exchange.

  5. Name parties involved in a bill of exchange.

  6. Differentiate between trade bill of exchange and accommodation bill of exchange.

  7. What is meant by honour of cheque?

  8. Define drawer.

Q3. Long questions (Attempt any 2 of 3 · 2 × 4 = 8)

  1. Pass journal entries and show account of Ferooz in the books of Roshin.

    Ferooz for mutual accommodation draws a bill for Rs. 15,000 on Roshin at three months. Ferooz gets the bill discounted by his banker for Rs. 14,625 and remits Rs. 4,875 to Roshin. On maturity Ferooz is not able to send the amount due to Roshin, to enable him to meet the bill. He, however, accepts a bill for Rs. 18,750 which is discounted by Roshin for Rs. 17,625. Roshin meets his acceptance and remits Rs. 900 to Ferooz. Before the due date of the bill Ferooz becomes insolvent and a dividend of 60 paisa in the rupee is received from his estate.

  2. Pass journal entries in the books of X & Y.

    X sold goods to Y for Rs.8,000 and allowed him a trade discount of 5%, X drew a bill for four months, Y accepted the bill and returned it to X. On the due date the bill is dishonored and X paid Rs. 50 as noting charges.

  3. Give journal entries in books of A and B.

    For mutual accommodation, A draws a bill on B for Rs. 10,000 at two months which is accepted by B. On the same date B draws a bill on A for a similar amount at two months. Both the parties get their bills discounted by their respective banks at 12% p.a. On the due date both the bills are honoured.