Account 1 Marks Question

A bill given to creditor is called Bill Payable. Why?

What is bill at sight?

Promissory Note requires the acceptance. Comment.

Give one special feature of promissory note.

Define the bill of exchange.

What is meant by Dishonour of a Bill of Exchange?

Ashok drew on Rakesh three Bills of Exchange respectively on 29th, 30th and 31st January, 2019. The term in each case is 1 month. What will be the due date in each case?

What do you understand by Days of Grace?
OR
How many Days of Grace are added to the period of Bills of Exchange?

Cancelling an old bill and drawing a new bill is called Renewal of a Bill. Is this true or false?

How is the time of payment of a Bill of Exchange calculated?

Is cancellation entry required when a bill is renewed?

Who are the partiess to a bill of exchange?

Who are the parties to a Promissory Note?

Explain the Discounting a Bill of Exchange.

What are Trade Bills?

Explain the term Date of Maturity.

A Bill of Exchange drawn on 1st July, 2018 for ₹ 5,900 for 3 months was dishonoured on due date and a sum of ₹ 20 was incurred as noting charges. The bill was renewed for another 3 months with 12% interest per annum. Find out the amount of the renewed bill.

Mention three advantages of a Bill of Exchange.

A has drawn a bill on B. B accepts the same. Can B endorse the bill to C?

At the time of renewal of a bill, the Interest Account is debited in the books of the Drawee. Is this true or false?

What is meant by Retiring a Bill under Rebate?

A Bill of Exchange was drawn on 12th July, 2018, its term was 1 month. What will be the date of maturity?

What are the different options available to the receiver of a Bill of Exchange?

What is meant by Renewal of a Bill?

Prepare an imaginary specimen of Bill of Exchange.

A bill of ₹ 5,000 is discounted with the bank for ₹ 4,750. The bill is dishonoured on maturity. The drawee pays 60% of his acceptance. What is the amount of Bad Debts?

A Bill of Exchange for ₹ 3,000 drawn on 1st June, 2018 and payable after 3 months was discounted with a bank at 10% p.a. but was dishonoured on due date and 8 were paid as noting charges. What was the amount claimed by the bank from the Drawer?

What is the meaning of ‘rebate' with reference to Bills of Exchange? OR
What is retiring a bill under rebate?

What is meant by Noting of Bill of Exchange?

Refusal by the acceptor to pay the bill on the maturity date is called Retirement of the Bill. Comment.

Distinguish between a bill of Exchange and a Promissory Note.

X drew a bill for ₹ 10,000 on Y on 7th March, 2019 for 2 months. X discounted this bill with Bank on 10th March, 2019 at 12% p.a. On maturity, the bill was dishonoured and bank paid ₹ 175 as noting charges. How much amount bank will deduct from the bank balance of X at the time of dishonour?