Write two points of distinction between bills of exchange and promissory note.
Bills of Exchange
a. There may be three parties to it, the drawer, the acceptor and the payee.
b. There is no need of fixing the stamps on the bills payable on demand but otherwise stamps would be necessary.
Promissory Note
a. There are only two parties to it - the maker who draws the note and signs it and the payee to whom the amount is payable.
b. Stamps have to be fixed in any case.
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?
Define accounting and state its objectives.
What kinds of errors would cause differences in the trial balance. Also list examples that would not be revealed by a trial balance?
List any five users who have indirect interest in accounting.
A concept that a business enterprise will not be sold or liquidated in the near future is known as :
(a) Going concern
(b) Economic entity
(c) Monetary unit
(d) None of the above
Giving examples, explain each of the following accounting terms:
* Fixed assets * Revenue * Expenses
* Gain * Profit * Capital
* Short-term liabilities
State the different elements of a computer system.
What is contra entry? How can you deal this entry while preparing double column cash book?
Give examples of two types of operating systems.
Why are the rules of debit and credit same for both liability and capital?