1) On 1.1.09 Mr. X draws on Mr. Y a bill for Rs. 20,000 payable after date for 3 months. The legal due date of the bill will be :


  • 1.4.2009
  • 2.4.2009
  • 3.4.2009
  • 4.4.2009

2) On 1.1.09 Mr. X draws on Mr. Y a bill for Rs. 20,000 payable after sight for 3 months.Mr. Y accepted the bill on 4.1.2009. The legal due date of the bill will be :

  • 4.4.2009
  • 7.4.2009
  • 1.4.2009
  • 10.4.2009
3) On 1.1.09 Mr. X draws on Mr. Y a bill for Rs. 20,000 payable after date for 3 months. 4th april was a sudden holiday,the legal due date of the bill will be :

  • 5.4.2009
  • 4.4.2009
  • 3.4.2009
  • 7.4.2009

4) On 1.1.09 Mr. X draws on Mr. Y a bill for Rs. 20,000 payable after sight for 3 months. Mr. Y accepted the bill on 4.1.2009. 7th april is a public holiday,the legal due date of the bill will be :

  • 6.4.2009
  • 8.4.2009
  • 4.4.2009
  • 1.4.2009

5) On 1.1.09 Mr. X draws on Mr. Y a bill for Rs. 20,000 payable after date for 30 days.Y accepted the bill on 4.1.2009.The legal due date of the bill will be :

  • 3.2.2009
  • 4.2.2009
  • 7.2.2009
  • 1.2.2009

6) On 1.1.08 Mr. X draws on Mr. Y a bill for Rs. 20,000 payable after sight for 90 days.The bill is accepted on 4.1.2008. The legal due date of the bill will be :

  • 4.4.2008
  • 7.4.2008
  • 10.4.2008
  • 6.4.2008

7) Under which circumstance drawer and payee is same person:

  • When drawer discounted the bill with banker
  • When drawer endorse the bill to the third party
  • When drawer held the bill till maturity
  • When the sent to banker for collection

8) Which of the follwing is not a feature of a bill of exchange? 

  • A B/E must be in writing.
  • A B/E must contain an order to a certain sum of money to a definite person or to his order to the bearer.
  • It must be properly dated and duly accepted by the party to whom the order is made.
  • It cannot be endorsed or transferred to other person.

9) Which of the following is not a Foreign bill?

  • A bill drawn outside India and made payable outside India.
  • A bill drawn outside india and made payable in India.
  • A bill drawn in India on a person resident outside India and made payable in India.
  • A bill drawn outside India on a person resident in India.A

10) A promissory note cannot be made payable to the bearer of the instrument?

  • True
  • False
11) A crossed cheque is a Negotiable instrument.

  • True
  • False

12) Which of the following statement is false:

  • Noting charge is an expense borne by the Drawee
  • Creditors can drawn a bill on debtors
  • A cheque is not entitled to any days of grace.
  • The purpose of accommodation bill is to finance actual purchase or sale of goods

13) Accommodation bill is prepared at will of both the parties.

  • True
  • False

14) On 1.1.2009 X draws a bill on Y for Rs.10000 for 90 days. On 4.2.2009 X got the bill discounted @ 10% p.a. The amount of discount will be:

  • 45+6
  • 45+
  • 456+

15) X draws a bill on Y for Rs. 5000. X endorsed the bill to Z who in turn discount it with bank. At maturity the amount of the bill will be paid by Y to:

  • X
  • Z
  • Bank
  • None of the above

16) Noting charges paid to Notary public is charged by :

  • Drawer
  • Drawee
  • Holder of bill of exchange
  • None of the above

17) Which of the following statement is false:

  • If a acceptor proves that the bill was not properly presented to him for payment, he can escape his liability
  • Oral Bills of Exchange are not Valid
  • A Bill is required to be produced before Notary Public at the time of dishonour
  • A sold goods to B. B will draw a bill on A for the goods sold to him.


18) Indian currency is a

  • Bill of exchange
  • Promissory Note
  • Hundi
  • Cheque





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