Class 11 Accountancy - Chapter Bill of Exchange NCERT Solutions | Write two points of distinction between

Fill in the blanks:
(i) A bill of exchange is a __________ instrument.
(ii) A bill of exchange is drawn by the __________ upon his __________.
(iii) A promissory note is drawn by __________ in favour of his __________.
(iv) There are __________ parties to a bill of exchange.
(v) There are __________ parties to a promissory note.
(vi) Drawer and __________ can not be the same parties in case of a bill of exchange.
(vii) Bill of exchange in India languages is called __________.
(viii) __________ days of grace are added in terms of the bill to calculate the date of its __________.

Write ‘True’ or ‘False’ against each statement regarding a bill of exchange:
(i) A bill of exchange must be accepted by the payee.
(ii) A bill of exchange is drawn by the creditor.
(iii) A bill of exchange is drawn for all cash transaction.
(iv) A bill payable on demand is called Time bill;
(v) The person to whom payment is to be made in a bill or exchange is called payee.
(vi) A negotiable instrument does not require the signature of its maker.
(vii) The hundi Payable at sight is called Darshani hundi.
(viii) A negotiable instrument is not freely transferable.
(ix) Stamping of promissory note is not mandatory.
(x) The time of payment of a negotiable instrument need not be certain.

Briefly explain the effects of dishonour and noting of a bill of exchange.

Explain briefly the procedure of calculating the date of maturity of a bill of exchange? Give example.

Briefly explain the benefits of maintaining a Bills Payable Book and state how is its posting is done in the ledger?

Give the meaning of rebate.

Briefly explain the purpose and benefits of retiring a bill of exchange to the debtor and the creditor.

What is meant by maturity of a bill of exchange?

A bill of exchange must contain “an unconditional promise to pay” Do you agree with a statement?

Give the performa of a Bills Payable Book.

Why is it necessary to record the adjusting entries in the preparation of final accounts?

State the meaning of incomplete records?

What is ‘Depreciation’?

Briefly state how the cash book is both journal and a ledger.

State the meaning of a trial balance?

State the four basic requirements of a database applications.

Define accounting.

State the different elements of a computer system.

Why is it necessary for accountants to assume that business entity will remain a going concern?

State the need for the preparation of bank reconciliation statement?

If the trial balance agrees, it implies that:

(a) There is no error in the books.
(b) There may be two sided errors in the book.
(c) There may be one sided error in the books.
(d) There may be both two sided and one sided errors in the books.

Discuss the concept-based on the premise do not anticipate profits but provide for all losses.

Describe the advantages of sub-dividing the Journal.

Describe the informational needs of external users.

State the various essential features of an accounting report.

State the meaning of incomplete records?

Give a specimen of an account.

Explain how the following may be ascertained from incomplete records:
(a) Opening capital and closing capital
(b) Credit sales and credit purchases
(c) Payments to creditors and collection from debtors
(d) Closing balance of cash.

Give four examples each of ‘provision’ and ‘reserves’.

If wages paid for installation of new machinery is debited to wages Account, it is:

(a) An error of commission.
(b) An error of principle.
(c) A compensating error.
(d) An error of omission.