Account True False[1 Marks ]

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.

When a bill is renewed, the original bill need not be cancelled.

Acceptance is necessary in case of a promissory note.

The date of maturity of an “after date” bill is calculated from the date of drawing the bill.

In case of dishonour of bill, noting charges are initially paid by the drawee.

In case of dishonour, the drawee always debits bills payable account and credits drawer's account.

When a bill is discounted or endorsed, no entry for payment of the bill is passed in the books of the drawer.

A promissory note cannot be made payable to the bearer.

The bill is treated as dishonoured in case of insolvency of the drawee.

A promissory note is drawn and signed by debtor.

No entry is passed in the books of the drawee when a bill is either discounted or endorsed.

The liability of the drawer for the payment of a promissory note is primary.

In case of dishonour, the drawer always debits the account of drawee whether the bill is retained, endorsed or discounted.

Drawer and Payee can be the same person in case of a bill of exchange.

In case of a public holiday the due date of the bill falls one day later.

The date of maturity of an “after sight” bill is calculated from the date of acceptance of the bill.

A bill from the point of view of a creditor is called a bill receivable.

Bill of exchange is an unconditional promise to pay.