Accounting Mcqs

Page No. 40

How many parties are generally found in a Bill of Exchange?


a4

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b2

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c3

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d5

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View Answer 3

Which of the following is not a feature of a promissory note?


aIt must be in writing

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bIt contains an unconditional promise to pay

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cIt is payable to the bearer

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dIt must be signed by the maker

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Under which of the following situations, is journal entry not passed in the books of the drawer?


aWhen a discounted bill is honoured by the drawee on the due date

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bWhen a bill is sent to the bank for collection

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cWhen a bill is renewed at the request of the drawee

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dWhen a debtor accepts a bill drawn by the drawer

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The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to


aDiscounting of the bill with the bank

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bPayment of the bill on due date

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cRemitting or receiving the amount

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dSending the bill to bank for collection

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The noting charges levied on dishonour of an endorsed bill by the Notary Public are to be borne by


aThe drawer of the bill

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bThe person responsible for dishonour

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cThe holder of the bill

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dThe endorser of the bill

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In the books of the drawer, the accounting treatment involved on receipt of a bill of exchange duly accepted by the drawee is? 0 i. Debit Bills Receivable Account ii. Debit Drawee‘s Account iii. Credit Drawee‘s Account iv. Credit Sales Account


aOnly (i) above

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bBoth (ii) and (iv) above

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cBoth (i) and (iii) above

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dBoth (i) and (iv) above

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When bill discounted with the bank is dishonored?


aAcceptor‘s Account is debited in the books of drawer

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bBills Receivable Account is credited in the books of drawer

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cBank Account is debited in the books of drawer

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dBills Payable Account is debited in the books of drawer

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A Bill of Exchange is drawn on 1st April, 2018 payable after 3 months. The due date of the bill is?


a30th June,2018

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b1st July,2018

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c4th July,2018

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d4th August,2018

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View Answer 4th July,2018

Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.


a50,000

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b55,000

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c60,000

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d65,000

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View Answer 60,000

Arrangement of Balance Sheet in a logical order is known as __________?


aDressing Balance Sheet

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bMarshalling Balance Sheet

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cFormatting Balance Sheet

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dMake up of Balance Sheet

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