Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

Notary public may charge his fee from the __________.

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

  1. drawer

  2. drawee

  3. holder of bill of exchange

  4. none of the above

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Correct Option: C

Which of the following is correct for presenting bill through notary public?

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

  1. To pay fees to notary public

  2. For "bill for collection"

  3. It is just to prove that the bill has been properly presented

  4. For drawing a fresh bill

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Correct Option: C

Which of the following statements is true?

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

  1. A bill cannot be endorsed more than two times

  2. A bill is drawn by purchaser

  3. A bill contains an unconditional promise to pay

  4. Noting charges are borne by the drawee in the event of dishonor of bill

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Correct Option: D

Noting fee means __________.

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

  1. charges for noting the bill of exchange in the books of account

  2. payments made to the notary public for recording the fact of the bill getting dishonoured

  3. interest till the maturity date

  4. commission paid to the bank

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Correct Option: B

Noting charges are considered as expense by the party, who makes the payment.

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

  1. True

  2. False

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Correct Option: B
Explanation:

When a Bill of Exchange (BOE) is dishonoured, then in order to prove this fact, the drawer (or the bill holder) may get it noted and protested through a public official known as 'Notary Public' for which it charges its fees which is called Noting Charges.

Which of the following statements is true?

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

  1. Noting charge is an expense to be borne by drawer

  2. Noting charge is an expense to be borne by drawee

  3. Noting charge is an expense to be borne by payee

  4. Noting charge is an expense to be borne by bank.

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Correct Option: B

When the bills is to be produced to notary public at the time of ___________.

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

  1. Drawing the bill

  2. Acceptance of the bill

  3. Dishonour of the bill

  4. Bills for collection

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Correct Option: C
Explanation:

If there is dishonour, or fear of dishonour, the bill will be given to a public official known as “Notary Public”. The amount of noting charges is recoverable from the party which is responsible for dishonour.

Noting Charges account is debited by _________.

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

  1. Drawer

  2. Payee

  3. Drawee

  4. Endorsee

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Correct Option: C

When an accommodation bill is discounted and the amount received is shared by the two parties, the discount is borne by the _________.

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

  1. drawee only.

  2. drawer only.

  3. drawer and drawee equally.

  4. drawer and drawee in agreed ratio.

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Correct Option: D

a bill drawn on 23.11.2013 as payable 2 months after sight was accepted on 24.11.2013. The date of maturity of this bill will be ______.

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange
    1. 1 .2014
    1. 1 .2014
    1. 1 .2014

  4. None of these.

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Correct Option: C