Important Questions and Answers on Bills of Exchange for Class 11 Students
MCQs for Accountancy Class 11 Chapter 8 focus on bills of exchange—a key topic for exam success in CBSE, NCERT, and commerce studies. Understanding bills of exchange supports students in school and competitive exams and helps in real-life business and accounting scenarios.
| Parties Involved | Role | Example |
|---|---|---|
| Drawer | Makes and signs the bill | A seller of goods |
| Drawee | Accepts and pays the bill | A buyer of goods |
| Payee | Gets the payment (can be same as drawer) | The seller or a third party |
MCQs for Accountancy Class 11 Chapter 8 (Bills of Exchange)
The topic “MCQs for Accountancy Class 11 Chapter 8” covers key concepts, including definitions, accounting entries, and calculation of due dates. Practicing these multiple-choice questions helps reinforce your understanding and ensures you are ready for both school and competitive exams.
Key Features and Types of Bills of Exchange
A bill of exchange is a written, unconditional order signed by the drawer, directing the drawee to pay a specified sum at a stated date. Types include trade bills (for business transactions) and accommodation bills (for mutual financial help).
| Type of Bill | Description | Use Case |
|---|---|---|
| Trade Bill | Drawn for actual sale of goods/services | Supplier sells to customer on credit |
| Accommodation Bill | No real transaction; mutual finance | Friends help each other arrange cash |
Exam-Oriented MCQs: Bills of Exchange
- A bill of exchange must be accepted by which party?
(a) Drawer (b) Drawee (c) Payee (d) Banker
Answer: (b) Drawee - What are extra three days allowed beyond the due date called?
(a) Tenor (b) Endorsement (c) Days of grace (d) Maturity
Answer: (c) Days of grace - The holder in due course is:
(a) Original payee (b) Any endorser (c) Subsequent holder meeting certain conditions (d) None
Answer: (c) Subsequent holder meeting certain conditions - On dishonour of a discounted bill, the bank will contact:
(a) Drawer (b) Drawee (c) Payee (d) Endorser
Answer: (a) Drawer - A bill of exchange can be negotiated by:
(a) Transfer only (b) Endorsement only (c) Endorsement and delivery (d) None
Answer: (c) Endorsement and delivery
Full sets of high-quality MCQs are crucial for assessment and quick revision. At Vedantu, we regularly update questions to match the latest CBSE/NCERT exam patterns, providing model answers and step-by-step explanations.
Accounting Entries for Bills of Exchange
Accounting for bills involves entries in both the drawer’s and drawee’s books. Students should also study the process for dishonoured, endorsed, discounted, or retired bills. Accurate records help ensure clarity and prevent exam errors.
- Bill Receivable (Drawer’s books): Debited when drawn, credited when honoured or discounted.
- Bill Payable (Drawee’s books): Credited when accepted, debited when paid.
Due Date Calculation
To calculate the due date, add the bill term to the drawing date plus three days of grace. For example, a bill dated 1st March for two months matures on 4th May (add 2 months + 3 days).
Tips for Solving Accountancy MCQs
- Read each question and all options carefully.
- Highlight key words (e.g., promissory note vs bill of exchange).
- Use working notes for due date and accounting entries.
- Review typical errors from previous years (e.g., confusing parties' roles).
- Use Vedantu’s online tests and PDF practice sets for instant feedback.
Download PDF and Practice Online Tests
For a structured practice, use our downloadable MCQ PDFs and timed online quizzes. This helps simulate real exam conditions and improves retention. Download bills of exchange study material or take a Chapter 8 online practice test now.
Related and Advanced Concepts for Chapter 8
- Difference Between Assets and Liabilities
- Accounting Entries in the Books of the Consignee
- Ledger Accounts
- Negotiable Instruments — Presentment for Acceptance
Summary
Mastering MCQs for Accountancy Class 11 Chapter 8 ensures clarity in bills of exchange, their parties, types, and accounting treatment. Regular practice of Vedantu’s curated MCQs, explanations, and online tests will prepare you thoroughly for exams and real-world commerce understanding.
FAQs on Accountancy Class 11 Chapter 8: Bills of Exchange MCQs with Answers
1. What is a bill of exchange in accountancy?
A bill of exchange is a negotiable instrument used in commerce for credit transactions. It's a written order from one party (the drawer) to another (the drawee) to pay a specified sum of money to a third party (the payee) on a specific date. This is crucial for understanding Class 11 Accountancy Chapter 8.
2. How are MCQs for Accountancy Class 11 Chapter 8 useful for exams?
MCQs for Accountancy Class 11 Chapter 8 (Bills of Exchange) offer focused revision and exam preparation. Solving them helps assess your understanding of key concepts, including:
- Types of bills of exchange (trade, accommodation).
- Parties involved in a bill.
- Calculation of due dates.
- Accounting entries for bills.
Regular practice boosts confidence and improves exam performance.
3. Where can I download MCQs for Accountancy Class 11 Chapter 8 with answers in PDF?
Many educational websites offer downloadable PDFs containing MCQs for Accountancy Class 11 Chapter 8, including those focused on bills of exchange. Look for reputable sources aligned with the CBSE/NCERT syllabus.
4. What type of questions are asked from bills of exchange in class 11?
Class 11 Accountancy questions on bills of exchange often cover:
- Definitions and features of bills.
- Distinguishing between different types of bills (trade vs. accommodation).
- Identifying the parties involved.
- Calculating due dates and noting periods.
- Understanding accounting entries related to bills (honoring, dishonoring, etc.).
Expect both theoretical and practical application questions.
5. How can I practice online MCQ tests for Class 11 Accountancy?
Numerous online platforms offer Class 11 Accountancy MCQ tests, many focusing on Chapter 8 (Bills of Exchange). These provide instant feedback and track progress. Search for reputable online learning resources aligned with the CBSE/NCERT syllabus.
6. Who are the parties involved in a bill of exchange?
Three main parties are involved in a bill of exchange:
- Drawer: The person who creates and issues the bill.
- Drawee: The person ordered to pay the amount.
- Payee: The person who receives the payment.
Understanding their roles is crucial for solving MCQs.
7. Which is the hardest chapter in class 11 accountancy?
The difficulty of Class 11 Accountancy chapters varies for each student. While some find Chapter 8 (Bills of Exchange) challenging due to its concepts of negotiable instruments and accounting entries, others may struggle with other topics like depreciation or partnership accounts. Consistent practice and thorough understanding of fundamentals is key.
8. How to get full marks in accountancy class 11?
Achieving full marks in Class 11 Accountancy requires consistent effort and a structured approach. This includes:
- Thorough understanding of concepts.
- Regular practice of numerical problems and MCQs.
- Solving past papers and sample questions, including those on bills of exchange.
- Clarifying doubts promptly with teachers or tutors.
- Mastering practical accounting entries and procedures.
9. Is accountancy class 11 hard?
The perceived difficulty of Class 11 Accountancy is subjective. The subject demands consistent effort and focused learning, especially for topics like bills of exchange which require understanding of financial instruments and accounting principles. However, with dedicated practice and a clear understanding of the concepts, success is achievable.
10. How do you calculate the due date of a bill, including days of grace?
Calculating the due date of a bill of exchange involves adding the specified number of days to the date of the bill. In some jurisdictions, days of grace (typically 3) are added after the specified period. Understanding this calculation is essential for solving practical MCQs on bills of exchange in Class 11 Accountancy. Consult the relevant legal guidelines for accurate calculations.
