Chapter 4 Negotiable Instrument Act 1881 Unit 2 Quiz 0 Created on January 05, 2024 By admin CMA: Business Law – Ch 4 Negotiable Instrument Act 1881 Unit 2 Quiz 1 1 / 13 A draws a bill on B for Rs.50, 000 for 3 months. At maturity, the bill returned dishonored noting charges Rs.300. An amount of 40 paise in a rupee is recovered from B’s estate. The amount of deficiency to record on insolvency in books of B will be: Rs.20,200 Rs.30,300 Rs.19,800 Rs.19,000 2 / 13 If the bill is accepted and the amount is given before the due date (i.e. maturity), then the bill is said to be: Cancelled Accepted Retired Dishonour 3 / 13 Which account is to be credited when an endorsed cheque is dishonored? Debtor Bill Receivable Endorsee Payee. 4 / 13 Endorsement of Bill means, transfer of right on the bill from : Drawee to the Creditors. Creditors to the Drawee. Drawer to the Creditors. Creditors to the Drawer. 5 / 13 On 1.6.2007 X draws a bill on Y for Rs.25, 000. At maturity Y request X to Accept Rs.5,000 in cash and noting charges incurred Rs.100 and for the balance X draw a bill on Y for 2 months at 12% p.a. Interest amount will be: Rs.410 Rs.420 Rs.440 Rs.400 6 / 13 Mohon draws a bill on Shaym for Rs.50, 000 for 3 months. Proceeds are to be shared equally. Mohon got the bill discounted @ 12% p.a. and remits required proceeds to Shaym. The amount of such remittance will be: Rs.24,250 Rs.25,000 Rs.16,167 Rs.32,333 7 / 13 The fee charged for getting the bill noted after dishonour is called. Discounting Charges. Noting Charges. Interest None of the above. 8 / 13 For Time or Tenure bill What is the number of days added to the due date. 2 Days. 3 Days. 5 Days. A Week. 9 / 13 What types of account is a Bill Payable A/c. Personal A/c Real A/c Nominal A/c Suspense A/c. 10 / 13 A Person who accepts the bill Drawer Drawee / Acceptor Promisor Endorser. 11 / 13 Bill of Exchange are covered under Indian Contract Act 1872 Negotiable Instruments Act 1881. Sale of Goods Act 1930. Companies Act 1956. 12 / 13 What do you mean by ‘Term of Bill’? Date of making the bill Duration of the bill The date on which the bill will lapse Date of making the bill. 13 / 13 Which of these statements is true about a Promissory note? A Promissory note cannot be made payable to the maker himself. A Promissory note is a conditional order to pay. A Promissory note does not require stamping. A Promissory note cannot be dishonoured. Your score isThe average score is 0% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 0 Created on January 05, 2024 By admin CMA: Business Law – Ch 4 Negotiable Instrument Act 1881 Unit 2 Quiz 2 1 / 13 If a bill is not paid on its due date, it is said to be —————-. Dishonoured Renewed Honoured Discounting. 2 / 13 Mr. X accepted a bill of exchange of Rs.15,000 drawn by Y and payable in 3 months got it discounted from Bank at 2% discount. On the due date X failed to pay the bill as he was adjusted insolvent. A final dividend of 0.25 in a rupee was received from his estate. What would be discounting charges of the Bill ? Rs.300 Rs.75 Rs.375 Rs.400. 3 / 13 When a Bill drawn and accepted on 23rd October, 2006 for three months will due date for payment on 26th January, 2007. 23rd January, 2007. 25th January, 2007. 27th January, 2007. 4 / 13 On 15.08.2005, X draws a bill on Y for 3 months for Rs.20, 000. 18th November was a sudden holiday, due date of the bill will be: 17th November. 18th November. 19th November. 15th November. 5 / 13 If the due date is a public holiday, the due date of the bill will be: Following Day Preceding Day. The same Day only. One month later. 6 / 13 A draws a bill on B for Rs.5, 000. A endorsed it to C. C endorsed it to D. The payee of the bill will be: A B C D 7 / 13 If a bill is dishonoured, when presented for payment by third party, the drawer will debit Acceptor’s A/c Thirds party’s A/c Neither of the two Holder’s A/c. 8 / 13 At the time of endorsement of a bill, the drawer credits. The drawee The endorsee’s personal account Bill receivable account Cash account. 9 / 13 Which of these statements is true about a Promissory note? A Promissory note cannot be made payable to the maker himself. A Promissory note is a conditional order to pay. A Promissory note does not require stamping. A Promissory note cannot be dishonoured. 10 / 13 Which account is to be credited when an endorsed cheque is dishonored? Debtor Bill Receivable Endorsee Payee. 11 / 13 Which of the following instrument is not a negotiable instrument? Bearer cheque. Promissory note. Bill of exchange. Crossed cheque. 12 / 13 Under which circumstances drawer and payee is same person. When drawer discounted the bill with banker. When drawer endorse the bill to the third party. When drawer held the bill till maturity. When drawee rejects to Accept the bill. 13 / 13 Which of the following is not foreign bill? A bill drawn in India, on a person resident outside India and made payable outside India. A bill drawn outside India, on a person resident outside India. A bill drawn outside India, made payable in India. A bill drawn on a person resident in India made payable in India. Your score isThe average score is 0% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
