Bill of Exchange

Bill of Exchange
If a bill is dishonored, when presented for payment by third party, the drawer will debit:
Acceptor’s account
Third party’s account
Neither of that two
Endorsee
Author: rikazzz Comment
Bill of Exchange
When the bill is dishonored acceptor’s account is debited in the books of the:
Bank
Drawer
Drawee
Endorsee
Author: rikazzz Comment
Bill of Exchange
When an endorsed bill is dishonored endorsee’ or creditor’s account is in the books of the:
Bank
Drawee
Drawer
Agent
Author: rikazzz Comment
Bill of Exchange
Bill of exchange is a convenient method for the transfer of:
Cash
Goods
Debt
Investment
Author: rikazzz Comment
Bill of Exchange
The drawer always debits acceptor’s account for noting charges paid on:
Honor of a bill
Endorsement of a bill
Dishonor of a bill
None of above
Author: rikazzz Comment
Bill of Exchange
A contingent liability that will only arise if a certain event occurs, is called:
Contingent liability
Mutual liability
Future liability
None of above
Author: rikazzz Comment
Bill of Exchange
In case of bill of exchanges, every bill has to be accepted by the:
Drawer
Bank
Drawee
Agent
Author: rikazzz Comment
Bill of Exchange
The procedure by which a bill is transferred from one person to another person for the settlement of debts is called.
Retirement of the bill
Endorsement
Renewal
None of above
Author: rikazzz Comment
Bill of Exchange
When a bill is renewed, interest account is credited in the book of the:
Drawer
Drawee
Bank
Endorsee
Author: rikazzz Comment
Bill of Exchange
When noting charges are paid at the time of dishonor of the bill, the drawee always debits:
Noting charges account
Interest account
Discount account
Drawer’s account
Author: rikazzz Comment

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