Bill of Exchange Account - Bill of Exchange

The person on whose favor a bill is endorsed is called as _______.

Which account is debited by a drawee of a bill of exchange on its endorsement?

A promissory note is a/ an ______.

The Bills Receivable Book is part of:

Bill of exchange is sometimes known as _________.

At the time of renewal of a bill, interest account is credited in the books of the drawee.

Bill of exchange is a conditional order to pay.

A promissory note has only two parties, the drawer and the payee.

There are two parties in a bill of exchange.

Accomodation bills are drawn without consideration.

The person in whose favour an endorsement is made is called ____________.

A Bill of Exchange has ____________ parties.

When a bill of exchange is not paid on its due date, it is called ____________.

State the account to bre debites or credited in the following situation:
Books of Drawer:-
When noting charges are paid by the bank at the time of dishonour of the bill, the drawee credits ____________ account.

Three days added for ascertaining the date of maturity of bill of exchange are called ____________.

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

Give the performa of a Bills Receivable Book.

What is discounting of the bill of exchange?

Name any two types of commonly used negotiable instruments.

Distinguish between Bill of Exchange and Promissory Note on the basis of acceptance.

What are the different uses available to a holder for dealing with bills receivable?

Define Bill of Exchange. What are the features of a Bill of Exchange?

Define a Promissory Note. What are the features of a Promissory Note?

Define a Promissory Note.

Mohan Singh draws a bill on Jagat for ₹ 1,000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties.

On 1st January, 2019, A sold goods to B for ₹ 5,000 plus IGST @ 18%. A received ₹ 900 by cheque from B and drew on him a bill for the balance amount payable 3 months after date. The bill was duly accepted by B. A retained the bill till due date. On due date, the bill was paid.
Pass Journal entries in the books of A and B. Also, show necessary accounts in the books of both the parties.

Explain any three of the following:

1. Retiring of a bill of exchange.
2. Discounting of a bill of exchange.
3. Bill sent to bank for collection.
4. Noting Charges.

Give a definition of Bill of Exchange and give its four characteristics.

On Jan 01, 2016, Shankar purchased goods from Parvati for ₹ 8,000 and immediately drew a promissory note in favour of Parvati payable after 3 months. On the date of maturity of the promissory note, the Government of India declared holiday under the Negotiable Instrument Act 1881. Since, Parvati was unaware about the provision of the law regarding the date of maturity of the bill, she handed over the bill to her lawyer, who duly presented the bill and received the payment. The amount of the bill was handed over by the lawyer to Parvati immediately. Recore the necessary Journal entries in the books of Parvati and Shankar.

Distinguish between an accomodation bill and a trade bill.

X sold goods to Y on 1.3.2017 for ₹ 12,000 and drew upon Y a bill of exchange for the same amount payable after two months. X immediately discounted the bill with his bank at 9% p.a. The maturity date of the bill was a non business day (holiday), therefore, X had to present the bill as per the provisions of the Indian Instruments Act, 1881. The bill was dishonoured by Y and X paid ₹ 45 as noting charges. Y settled the claim of X five days after the dishonour of the bill by a cheque which included interest @ 12% for the term of the bill.
Journalise the above transactions in the books of X and Y and prepare Y's account in the books of X and X's account in the books of Y.

Fill up the missing information in the following journal entries:

On 1st January, 2019, A drew a bill on B for ₹ 10,000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On the due date, the bill was dishonoured and C paid ₹ 50 as noting charges.
Record the transactions in the books of A, B and C.

On Feb. 01, 2017, Mohan sold goods worth ₹ 25,000 to Naresh and drew upon him a bill payable after 90 days. Naresh accepted the bill and Mohan endorsed the bill immediately in favour of his creditor Raja in full settlement of his account of ₹ 25,300. One week before the maturity of the bill Naresh requested Mohan to cancel the bill and draw upon him a new bill including interest of ₹ 400. Mohan agreed to it. Mohan immediately took the bill from Raja by making the payment to him and then drew upon Naresh a new bill for 30 days which was duly met by Naresh on due date.
Pass necessary entries in the books of Mohan.

Vinod sold goods to Darbara Singh for ₹ 1,000 on 1st January, 2019. He drew on the latter a bill for the amount payable 3 months after date. He discounted the bill with his bank for ₹ 990 on 4th January, 2019. On maturity, the bill is duly met. Make the Journal entries in the books of Vinod and Darbara Singh.