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CA Foundation Bills of Exchange and Promissory Notes — practice questions — page 2

Explore 93 free Bills of Exchange and Promissory Notes questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Bills of Exchange and Promissory Notes questions and exercises with answers

Showing questions 31–60 of 93.

The person named in a bill to whom the money is directed to be paid is the:Read the answer and worked solution →A drawee of a bill becomes its acceptor when he:Read the answer and worked solution →A cheque, under the Negotiable Instruments Act, is payable:Read the answer and worked solution →A negotiable instrument under section 13 must be payable:Read the answer and worked solution →When the endorser merely signs his name, the endorsement is said to be:Read the answer and worked solution →An endorsement that adds a direction to pay a specified person is an endorsement:Read the answer and worked solution →The person specified in an endorsement in full is called the:Read the answer and worked solution →A cheque shows Rs.5,000 in numerals but Rs.50,000 in words. The amount payable is:Read the answer and worked solution →A promissory note that specifies no time for payment is payable:Read the answer and worked solution →In a bill, the expressions 'at sight' and 'on presentment' mean:Read the answer and worked solution →In a bill of exchange, 'after sight' means after:Read the answer and worked solution →The maturity of a promissory note or bill is the date on which it:Read the answer and worked solution →A bill dated 30 August 1878 is payable three months after date. Counting days of grace, its maturity is:Read the answer and worked solution →A bill dated 29 January 1878 is payable one month after date. In 1878 (not a leap year), it matures on:Read the answer and worked solution →A bill dated 5 June is payable 30 days after date. Including grace, it matures on (no holidays):Read the answer and worked solution →If the day of maturity of a bill is a public holiday, it is deemed due on the:Read the answer and worked solution →An agent signs a promissory note without showing that he signs as agent. He is:Read the answer and worked solution →A general authority to trade empowers an agent to:Read the answer and worked solution →The drawer must compensate the holder on dishonour by the drawee only if he has received:Read the answer and worked solution →Who is bound to pay a promissory note at maturity, absent a contrary contract?Read the answer and worked solution →Once a bill has been accepted, the principal debtor on it is the:Read the answer and worked solution →A draws a bill on B, who accepts. A endorses it to C, C to D, D to E. As between E and C, the surety is:Read the answer and worked solution →Apart from a drawee in case of need or an acceptor for honour, who alone can bind himself by acceptance?Read the answer and worked solution →An endorser before maturity, not excluding liability, is bound on dishonour to:Read the answer and worked solution →An endorser who endorses after dishonour is liable as upon an instrument:Read the answer and worked solution →An instrument made without consideration creates, between original parties:Read the answer and worked solution →A bill lost before it is overdue: the holder may apply for a duplicate to the:Read the answer and worked solution →A bill payable to bearer is negotiated by:Read the answer and worked solution →Which method negotiates an instrument that is payable to order?Read the answer and worked solution →A holder endorses an instrument adding the words 'without recourse'. His liability on it is:Read the answer and worked solution →

Worked practice questions

The person named in a bill to whom the money is directed to be paid is the:

  1. Payee of it
  2. Endorser of it
  3. Acceptor of it
  4. Drawee of it
Show answer and solution

Correct answer: A. Payee of it

The party in whose favour the sum is ordered to be paid is known as the payee.

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A drawee of a bill becomes its acceptor when he:

  1. Signs assent on the bill and delivers it
  2. Pays the amount before the due date
  3. Endorses the bill to a third party
  4. Returns the bill to the drawer unsigned
Show answer and solution

Correct answer: A. Signs assent on the bill and delivers it

Acceptance is complete once the drawee signs assent on the bill and delivers it or gives notice of the signing.

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A cheque, under the Negotiable Instruments Act, is payable:

  1. After thirty days
  2. After acceptance
  3. After three days
  4. On demand only
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Correct answer: D. On demand only

A cheque cannot be expressed to be payable otherwise than on demand.

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