(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
Tag: Accounting Mcqs
When a B/R is endorsed by the Drawer what entry is passed by the Drawee__.
(A) B/R A/c Dr. to Drawer A/c Cr.
(B) B/P A/c Dr. to Drawer A/c Cr.
(C) 3rd Party‘s A/c Dr. to B/P A/c Cr.
(D) No entry at all
How many parties are generally found in a Bill of Exchange?
(A) 4
(B) 2
(C) 3
(D) 5
Which of the following is not a feature of a promissory note?
(A) It must be in writing
(B) It contains an unconditional promise to pay
(C) It is payable to the bearer
(D) It must be signed by the maker
Under which of the following situations, is journal entry not passed in the books of the drawer?
(A) When a discounted bill is honoured by the drawee on the due date
(B) When a bill is sent to the bank for collection
(C) When a bill is renewed at the request of the drawee
(D) When a debtor accepts a bill drawn by the drawer
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?
(A) Discounting of the bill with the bank
(B) Payment of the bill on due date
(C) Remitting or receiving the amount
(D) Sending the bill to bank for collection
The noting charges levied on dishonour of an endorsed bill by the Notary Public are to be borne by?
(A) The drawer of the bill
(B) The person responsible for dishonour
(C) The holder of the bill
(D) The endorser of the bill
Which of the following statements is/are false?
(A) Accommodation bills are drawn for the benefit of drawer only
(B) Bills sent for collection is an asset
(C) Bills of exchange cannot be drawn on a banker
(D) Both (a) and (c) above