Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

On 18.2.13 A drew a bill on B for 10,000. B accepted the bill on 21.2.13. The bill is drawn for 30 days after sight. The due date of the bill will be:

  1. 24.3.13

  2. 22.3.13

  3. 26.3.13

  4. 21.3.13
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For a bill 'after sight', the maturity period starts from the date of acceptance (21.2.13). 30 days from 21.2.13 is 23.3.13. Adding 3 days of grace results in 26.3.13.

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

On 1st Jan 2013,  X draws a bill on Y for Rs 1,50,000 for 3 months. X got the bill discounted on 4th Jan 2013, @ 12% p.a. The amount of discount on bill will be:

  1. 4,500

  2. 6,000

  3. 18,000

  4. 3,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Calculation of discount for 3 months @ 12% p.a. 

      = 150000* 3/12 * 12/100
      =  4500

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

On 10th Sept. X draws a bill on Y for 3 months for 20,000. $ { 13 }^{ th } $ Dec. Was a sudden holiday, due date of the bill will be:

  1. $ { 11 }^{ th } $ Dec.

  2. $ { 12 }^{ th } $ Dec.

  3. $ { 13 }^{ th } $ Dec.

  4. $ { 14 }^{ th } $ Dec.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

If due date comes on emergency holiday need to take next working day as due date therefore here  14th Dec is due date.

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

A bill is drawn on $ { 29 }^{ th } $ Jan for one month after date. The date of acceptance is $ { 2 }^{ nd } $ Feb. The bill is drawn on one month after date basis. The due date of the bill will be:

  1. $ { 28 }^{ th } $

  2. $ { 1 }^{ st } $ Mar

  3. $ { 2 }^{ nd } $ Mar

  4. $ { 3 }^{ rd } $ Mar
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The bill is drawn on 29th Jan for one month. One month from 29th Jan is 28th Feb (or 1st March in a leap year, but standard practice uses the same date). Adding 3 days of grace to 28th Feb (or 1st March) leads to 3rd March.

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

On 10th Sept. X draws a bill on Y for 25,000 for 30 days. 13th Dec. is public holiday, due date of the bill will be:

  1. $ { 11 }^{ th } $ Dec.

  2. $ { 12 }^{ th } $ Dec.

  3. $ { 13 }^{ th } $ Dec.

  4. $ { 14 }^{ th } $ Dec.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

30 days from 10th Sept is 10th Oct. Adding 3 days of grace is 13th Oct. Wait, the question mentions 13th Dec as a public holiday. 30 days from 10th Sept is 10th Oct + 3 days = 13th Oct. The question text seems to contain a typo regarding the month (Dec instead of Oct), but 12th is the day before the holiday.

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

A draws a bill on B for 1,50,000. A endorsed the bill to C. The bill return dishonoured. Noting charges 1,500. B request A to accept the amount at 2% discount by a single cheque. The cheque amount will be:

  1. 1,47,000

  2. 1,48,470

  3. 1,49,500

  4. 1,51,470
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total amount due = 1,50,000 (bill) + 1,500 (noting charges) = 1,51,500. A 2% discount on 1,51,500 is 3,030. 1,51,500 - 3,030 = 1,48,470.

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

X draws on Y a bill for 6,00,000 on 1st April for 2 months. Y accepts the bill and sends it to X who gets it discounted for 5,88,000. X immediately remits 1,96,000 to Y. On due date, X being unable to remit the amount due accepts a bill for 8,40,000 for 2 months which is discounted by Y for 8,20,000. Y sends 1,48,000 to X out of the same. How much discount will be borne by X at the time of 1,48,000 remittances.

  1. 12,000.

  2. 18,000.

  3. 11,000.

  4. 8,000.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The discount borne by X is the difference between the face value of the bill and the amount received from the bank. The question asks for the discount on the second bill (8,40,000 discounted for 8,20,000), which is 20,000 total. The remittance logic implies X bears the cost proportional to the funds received.

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

X sold goods worth Rs 1,50,000 to Y. Y immediately accepted a bill on 1st Nov payable after 2 months. X discounted this bill @ 18% p.a. on 15th Nov. On the due date , Y failed to discharge the bill. Later on Y became insolvent and 50 paise in a rupee is recovered from Y's estate. How much amount of bad debt will be recorded in the books of X?

  1. 75,000.

  2. 1,47,000.

  3. 1,52,000.

  4. Nil.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

On the due date , Y failed to discharge the bills.

And X received 50 paise in a rupee from Y's estate.
So, Amount of bad dept can be calculated as
150000* 50/100
75000.

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

X sold goods to Y on 1st June for 1,50,000. Y immediately accepted a three months bill. On due date Y requested that the bill be renewed for a fresh period of two months. X agrees provided interest at 9% p.a. was paid immediately is cash. What will be the amount of interest in the books of X?

  1. 2,000.

  2. 2,500.

  3. 2,250.

  4. 2,800.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest = Principal * Rate * Time. 1,50,000 * 0.09 * (2/12) = 2,250.