Tag: renewal of the bill

Questions Related to renewal of the bill

Interest due in the books of drawer is ______________ drawee's account.

  1. Debited

  2. Credited

  3. No entry

  4. None


Correct Option: A

During renewal of the bill the old bill is _____________ and fresh bill is accepted.

  1. cancelled

  2. dishonored

  3. retired

  4. none


Correct Option: A

A bill of Rs.10000 Retired one month before due date @12% p.a , ascertain the rebate allowed ____________.

  1. 100

  2. 105

  3. 110

  4. 120


Correct Option: A

During renewal ________ are not considered as cancellation cost is mutually agreed between both the parties.

  1. interest

  2. payment

  3. noting charges

  4. none


Correct Option: C

Only ________ can retire the bill before due date.

  1. drawer

  2. bank

  3. drawee

  4. endorse


Correct Option: C

Retirement of bill means __________.

  1. making payment before the due date

  2. cancellation of the bill

  3. sending the bill for collection

  4. endorsing the bill in favour of third party


Correct Option: A

When part payment is received drawer debits ________ account.

  1. drawee

  2. cash

  3. bill receivable

  4. none


Correct Option: B

When drawee approaches the drawer for further extension of bill it is known as __________________.

  1. Renewal of the bill

  2. Retirement of the Bill

  3. Drawing of the Bill

  4. Dishonoring of the Bill


Correct Option: A

At the time of retirement of a bill a exchange, the drawee credit ___________.

  1. interest A/c

  2. commission A/c

  3. bank A/c

  4. bills receivable A/c


Correct Option: C

X draws a bill of exchange of Y for $Rs. 20,000$ payable in $4$ months. On the due date Y could not make the payment and requested X to renew a fresh bill for another three months at $12$% interest p.a. The amount of fresh bill will be ____________.

  1. $Rs. 20800$

  2. $Rs. 20400$

  3. $Rs. 22400$

  4. $Rs. 21300$


Correct Option: A