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CA Foundation Bills of Exchange and Promissory Notes — practice questions — page 3

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 61–90 of 93.

An order instrument endorsed in blank becomes payable to:Read the answer and worked solution →A writing that transfers only part of the amount due on an instrument is, for negotiation:Read the answer and worked solution →A person who acquires a bill after its maturity has, against other parties:Read the answer and worked solution →A drawee may require the holder to allow him how long, excluding public holidays, to decide on acceptance?Read the answer and worked solution →A holder gives the drawee 72 hours to consider acceptance, without earlier parties' consent. They are:Read the answer and worked solution →Presentment for payment at a banker's must be made within:Read the answer and worked solution →A demand promissory note with no specified place of payment: presentment to charge the maker is:Read the answer and worked solution →A bill payable at a specified period after date must be presented for payment:Read the answer and worked solution →Presentment for payment is unnecessary when the maker:Read the answer and worked solution →Under section 80, if no interest rate is specified, interest runs at what rate per annum?Read the answer and worked solution →A material alteration made without consent renders the instrument, against that party:Read the answer and worked solution →A promissory note is dishonoured by non-payment when its maker:Read the answer and worked solution →A bill is dishonoured by non-acceptance when the:Read the answer and worked solution →On dishonour, notice of dishonour need not be given to the:Read the answer and worked solution →Notice of dishonour may be given:Read the answer and worked solution →A duly directed notice of dishonour sent by post is lost in transit. The notice is:Read the answer and worked solution →Notice of dishonour is not needed to charge the drawer when he has:Read the answer and worked solution →Dishonour of a promissory note or bill may be noted on the instrument by a:Read the answer and worked solution →A notary's certificate recording the dishonour of a bill is called a:Read the answer and worked solution →A holder may have a notary demand better security from the acceptor when the acceptor has:Read the answer and worked solution →A protest must contain:Read the answer and worked solution →One who accepts a protested bill to honour the drawer or an endorser is an:Read the answer and worked solution →A person named in a bill, besides the drawee, to be resorted to in case of need is a:Read the answer and worked solution →A bill is drawn in Kolkata and made payable in Chennai. It is deemed:Read the answer and worked solution →A bill is drawn in London on a drawee resident in Mumbai. Under the Act it is:Read the answer and worked solution →Where an instrument may be read as a promissory note or as a bill, the holder:Read the answer and worked solution →A signed writing 'Mr B I.O.U Rs.1,000' is, under section 4:Read the answer and worked solution →A signs 'I promise to pay B or order Rs.500.' This is:Read the answer and worked solution →A sum payable may still be 'certain' although it includes:Read the answer and worked solution →A holder in due course must acquire the instrument for consideration:Read the answer and worked solution →

Worked practice questions

An order instrument endorsed in blank becomes payable to:

  1. Drawer of it only
  2. The bearer of it
  3. Original payee only
  4. A notary public
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Correct answer: B. The bearer of it

A blank endorsement converts the instrument into one payable to its bearer, even if first payable to order.

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A writing that transfers only part of the amount due on an instrument is, for negotiation:

  1. Valid for half the sum
  2. Valid if protested
  3. Valid if drawee agrees
  4. Not valid at all
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Correct answer: D. Not valid at all

Section 56 refuses validity to a part-transfer endorsement because it would split the claim.

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A person who acquires a bill after its maturity has, against other parties:

  1. Only his transferor's rights
  2. Full due-course rights
  3. The drawer's own rights
  4. No rights whatsoever
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Correct answer: A. Only his transferor's rights

Taking after maturity, or after dishonour with notice, gives only the rights the transferor had.

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