Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

When balance as per Cash Book is the starting point which of the following is added:

book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

  1. Uncollected Cheques

  2. Unpresented Cheques

  3. Direct payments by Bank

  4. Interest charged by Bank

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Correct Option: B
Explanation:

 Unpresented cheques must be deducted from the balance as per Bank Statement when reconciling it with Cash Book. Therefore, unpresented cheques must be added to the balance as per Cash Book when reconciling it with the Bank Statement.

__________ of the bill occurs when drawee has funds at disposal and makes a request to drawer or holder to accept the payment before its due date.

book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

  1. Retirement

  2. Renewal

  3. Discounting

  4. Honoring

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Correct Option: A

A bill of Rs. 5000 is being renewed for next 3 month with interest @ 12 % p.a
ascertain the Interest Amount __________.

book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

  1. 100

  2. 175

  3. 150

  4. 155

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Correct Option: C

When bill is cancelled Drawee passes Following Entry ______________.

book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

  1. Bill Payable A/c Dr

    To Drawer A/c

  2. Bill Payable A/c Dr

    To Cash A/c

  3. Drawer A/c Dr

    To Bill Payable A/c

  4. None

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Correct Option: A

\Discount at the time of retirement of a Bill is a gain for the drawee.

book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

  1. True

  2. False

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Correct Option: A

If the drawee pay the bill before its maturity date it is called ___________.

book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

  1. retirement

  2. pre-payment

  3. postponement

  4. dishonor

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Correct Option: A

At the time of renewal of a bill, interest account is in the books of the drawer. 

book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

  1. Credited

  2. Debited

  3. None of these

  4. Both (a) and (b)

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Correct Option: A

Retiring or outgoing partner:

book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

  1. To be liable for firms liabilities.

  2. Not liable for any liabilities of the firm.

  3. Is liable for obligation incurred before his retirement.

  4. Is liable for obligations incurred with his consent only.

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Correct Option: C

When bill is retired , What will be the entry in the books of Drawee ?

book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

  1. Bill payable A/c Dr

    To Cash A/c

    To Discount A/c

  2. Bill payable A/c Dr

    To Cash A/c

    To Rebate A/c

  3. No Entry

  4. None of the Above

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Correct Option: B

Rebate is calculated for __________ time before the due date.

book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

  1. unexpired

  2. expired

  3. future

  4. none

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Correct Option: A