Chapter 8 Bills of Exchange

1.   Name any two types of commonly used negotiable instruments.

2.   Write two points of distinction between bills of exchange and promissory notes.

3.   State any four essential features of bill of exchange.

4.   State the three parties involved in a bill of exchange.

5.   What is meant by maturity of a bill of exchange?

6.   What is meant by dishonour of bills of exchange?

7.   Name the parties to a promissory note.’

8.   What is meant by acceptance of a bill of exchange?

9.   What is noting of bill of exchange?

10.  What is meant by renewal of bill of exchange?

11.  Give proforma of bill receivable book

12. Give the proforma of bill payable book

13.  What is retirement of a bill of exchange?

14.  Give the meaning of rebate

15.  Give proforma of bill of exchange

Long Answers

1.   A bill of exchange should contain an unconditional promise to pay. Do you agree with this statement?

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

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

4.   Distinguish between bill of exchange and promissory note.

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

6.   Explain briefly the purpose and advantages of maintaining of a Bills Receivable Book.

7.   Briefly explain the benefits of maintaining a bills payable book and state how its posting done in the ledger?