Bill of Exchange Class 11 Accountancy Practice Questions

1. Name any two types of commonly used negotiable instruments. 
2. State any three points of distinction between bills of exchange and promissory note.
3. Give any four features of bill of exchange.
4. Name the parties involved in a bill of exchange.
5. What do you mean by dishonour of a bill of exchange?
6. A bill of exchange must contain an unconditional promise to pay. Do you agree with a statement?

NUMERICAL QUESTIONS:

1. On 1st March 2021, A sold goods worth Rs.25,000 to B. Half of the payment was made immediately and for the remaining half, A drew a bill of exchange upon B payable after two months. B accepted the bill and returned it to A. On the due date, A presented the bill to B and received the payment. Journalise the above transactions in the books A and B.
2. A sold goods for Rs.10,000 to B on 10th January and drew upon him a bill of exchange payable after 2 months. B accepted the bill and handed over the same to A after acceptance. A immediately discounted the bill with his bank@6% p.a. On the due date, B met the bill. Journalise the above transactions in the books of A and B.
3. Ajay sold goods for Rs. 15,000 to Bunty and immediately drew a bill upon him on 1st January payable after 3 months. The bill was endorsed by Ajay in favour of his creditor Deepak. On maturity the bill was dishonoured and Rs. 50 were paid by the holder of the bill as noting charges. Pass the necessary journal entries in the books of Ajay and Bunty.