Tag: dishonour of a bill

Questions Related to dishonour of a bill

If a bill is. dishonoured, when presented for payment by third party, the drawer will debit:

  1. Acceptors account

  2. Third partys account

  3. Neither of the two

  4. None of the above


Correct Option: A

A bill of Rs 23000 dishonoured and noting charges paid by Drawer is Rs. 100 than Drawee's A/c will be Debited for Rs. __________.

  1. 23100

  2. 23000

  3. 100

  4. none


Correct Option: A

When noting charges are paid by the bank at the time of the dishonour of the bill, the drawee credits:

  1. Bank account

  2. Noting charges account

  3. Neither (a) nor (b)

  4. None of these


Correct Option: C

At the time of endorsement of a bill, the drawer credits:

  1. The drawee

  2. The endorsees personal account

  3. Bills receivable account

  4. either (A) or (B)


Correct Option: C

When the bill is dishonoured, the account debited in the book of drawee _____________.

  1. Acceptor's account

  2. Creditor's account

  3. Bills payable account

  4. None of the above


Correct Option: C

If a cheque sent for collection is dishonored, the debit is given to _________.

  1. Suppliers Account

  2. Bank Account

  3. Customers Account

  4. Cash Account


Correct Option: C
Explanation:

At the time of receiving a cheque, customer account was credited, hence if the cheque bounces, a reverse entry has to be passed by debiting the customer account and crediting the bank account.

A customer's cheque returned dishonoured is recorded in_________________.

  1. Purchase Return Book

  2. Sales Return Book

  3. Bank Statement

  4. Journal


Correct Option: C
Explanation:

The dishonored cheque is shown in the debit column of the bank statement.

When a bill deposited for collection by the drawer in his bank is dishonoured, drawer has to credit _____________ A/c.

  1. Drawee

  2. Payee

  3. Bank for collection

  4. Endorsee


Correct Option: C
Explanation:

When Bill sent for collection is Dishonored amount receivable from the Bank is cancelled hence Bank for Collection A/c is Credited.

Fees charged by the notary public on dishonouring of bill ______________.

  1. Noting charges

  2. Bill charges

  3. Broker charges

  4. Invalid charges


Correct Option: A
Explanation:

Noting charges are the fees levied by notary public authority for recording the facts of dishonour of the bill.

Officer appointed by Central Government for noting of dishonour bill.

  1. Central government

  2. Notary public

  3. Judicial committee

  4. State government


Correct Option: B
Explanation:

The authority appointed by the Government of India for noting down the reasons of dishonour is called Notary Public Authority.