Deck 38: Bills of Exchange, Consignment, and Partnership

Question 1

When a B/R is discounted, what entry is passed by the Drawee-

A)Bank A/c Dr. to B/R Cr. .
B)Drawer A/c Dr. to B/R A/c Cr.
C)B/R A/c Dr. to B/P A/c Cr. .
D)No entry

Answer 1

No entry

Question 2

Noting charges are ultimately borne by-

A)Drawee .
B)Drawer .
C)Payee .
D)None

Answer 2

Drawee .

Question 3

Which of these is not an essential feature of a bill of exchange

A)Unconditional .
B)Certainty of amount .
C)In writing.
D)Amount to be paid in foreign currency

Answer 3

Amount to be paid in foreign currency

Question 4

A foreign bill of exchange is generally drawn up in -

A)Triplicate .
B)Duplicate .
C)Single .
D)Quadruplicate

Question 5

Which of these are not required in a promissory note

A)Acceptance .
B)Unconditional promise to pay .
C)Properly stamped.
D)Payment to be made legal currency

Question 6

Accommodation bills are generally for -

A)Genuine trade reasons .
B)For mutual financial accommodation.
C)To help augment money supply .
D)All the three

Question 7

Which of these is not true about a promissory note

A)Unconditional promise .
B)Crossing .
C)Certainty of amount .
D)Payee to a certain person

Question 8

Drawee means a person who -

A)Makes the order .
B)Accepts it .
C)Takes the payment on due date .
D)Creditor

Question 9

Retirement of a bill of exchange means -

A)Cancellation of bill .
B)Premature payment of bill .
C)Discounting of bill.
D)Endorsement of bill

Question 10

Early payment of a Bill of Exchange is known as -

A)Retirement .
B)Renewal .
C)Discount .
D)Endorsement

Question 11

On early retirement of a B/E who suffers loss of interest -

A)Drawee .
B)Drawer .
C)Payee .
D)None

Question 12

Sudhir of Simla consigned 100kg of vegetables to D of Delhi for ` 1500. He spent ` 75 on transportation. 10kg were found unfit for resale due to weather conditions and of the remaining 85 kg were sold for ` 1675. Find the value of closing stock.

A)87.50 .
B)75.00 .
C)80.00 .
D)90.00

Question 13

Sudhir of Simla consigned 100kg of vegetables to D of Delhi for ` 1500. He spent ` 75 on transportation. 10kg were found stolen during transit and of the remaining 85 kg were sold for ` 1675. Find the value of closing stock.

A)87.50 .
B)78.75 .
C)80.00 .
D)90.00

Question 14

Loss of goods in transit is borne by-

A)Consignee .
B)Consignor .
C)Both (a) and (b) proportionately .
D)Insurance company

Question 15

A consignor is entitled to ------

A)Profit on consignment .
B)Commission on Sales .
C)Reimbursement of expenses
D)Interest on capital

Question 16

A consignee is entitled to -------

A)Commission on sales .
B)Reimbursement of the expenses .
C)Del credere commission.
D)All of these

Question 17

Which of these is a normal loss -

A)Loss in weight due to weather conditions .
B)Shortage during transit .
C)Breakage during handling .
D)Loss in value due to market conditions

Question 18

Del credere commission is allowed to -

A)Consignee .
B)Consignor .
C)Agent of consignee .
D)Debt collection agency

Question 19

Balance left in Consignment A/c shows -

A)Profit or loss on consignment .
B)Stock lying with the consignee .
C)Stock lying with the debtors .
D)Stock awaiting approval

Question 20

If the consignee is allowed del credere commission, then he bears -

A)All sales promotion expenses .
B)Loss due to bad debts .
C)Loss due shortage of goods .
D)All routine expenses in connection with the goods

Question 21

On 1st April 2013 Abhay of Patna consigned goods costing `7500 to Bhola of Ranchi at a proforma invoice price of 25% profit on sales. The Consignment A/c will be credited for stock loading by -

A)2500 .
B)1875 .
C)2000 .
D)1500

Question 22

As per Partnership Act, which of these rights are available to a partner --

A)Bonus .
B)Salary .
C)Commission .
D)Equal profit

Question 23

What does the balance in Memorandum Joint Venture A/c shows-

A)Profit or Loss .
B)Closing Stock .
C)Balance due from other Co-venturer
D)Difference in Trial Balance

Question 24

Which of these is not a part of double entry system

A)Joint Bank A/c .
B)Memorandum A/c .
C)Joint Venture A/c .
D)Joint Venture with other co-venturer A/c