What is meant by renewal of a bill of exchange? . Give the performa of a Bills Receivable Book. .
Give the performa of a Bills Payable Book. . What is retirement of a bill of exchange? .
Give the meaning of rebate. . Give the performa of a Bill of Exchange. Long Answers .
A bill of exchange must contain “an unconditional promise to pay” Do you agree with a statement? . 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. . Distinguish between bill of exchange and promissory note.
. Briefly explain the purpose and benefits of retiring a bill of exchange to the debtor and the creditor. . Explain briefly the purpose and advantages of maintaining of a Bills Receivable Book.
. Briefly explain the benefits of maintaining a Bills Payable Book and state how is its posting is done in the ledger? Numerical Questions . On Jan , Rao sold goods Rs.
, to Reddy. Half of the payment was made immediately and for the remaining half Rao drew a bill of exchange upon Reddy payable after days. Reddy accepted the bill and returned it to Rao. On the due date Rao presented the bill to Reddy and received the payment.
Journalise the above transactions in the books Rao and prepare of Rao’s account in the books of Reddy. . On Jan , , Shankar purchased goods from Parvati for Rs. , and immediately drew a promissory note in favour of Parvati payable after months.
On the date of maturity of the promissory note, the Government of India declared holiday under the Negotiable Instrument Act . Since, Parvati was unaware about the provision of the law regarding the date of maturity of the bill, she handed over the bill to her lawyer, who duly presented the bill and received the payment. The amount of the bill was handed over by the lawyer to Parvati immediately. Recore the necessary Journal entries in the books