Class 11 Accountancy - Chapter Bill of Exchange NCERT Solutions | Fill in the blanks: (i) A bill of excha

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?

Name the parties to a promissory note.

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?

What is Accounting Information System?

State the relationship between information and decision.

Differentiate between source documents and vouchers.

What is the purpose of contra entry?

What are the possible reasons for keeping incomplete records?

The accounting concepts and accounting standards are generally referred to as the essence of financial accounting. Comment.

Opening capital is ascertained by preparing :

  (a) Total debtors account      (b) Total creditors account
  (c) Cash account                  (d) Opening statement of affairs

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.

Favourable bank balance means:
  (a) Credit balance in the cash book      (b) Credit balance in passbook
  (c) Debit balance in the cash book       (d) Both (b) and (c)

If opening capital is Rs. 60,000, drawings Rs. 5,000, capital introduced during the period Rs. 10,000, closing capital Rs. 90,000. The value of profit earned during the period will be :

  (a) Rs. 20,000            (b) Rs. 25,000
  (c) Rs. 30,000            (d) Rs. 40,000