SSC CGL Finance – Bills of Exchange – Level 3 · Challenge

← Back

SSC CGL Finance – Bills of Exchange – Level 3 · Challenge – 8 questions, subject: Finance & Economics (Tier II Paper III). Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

Get daily current affairs & exam alerts – follow us YouTube WhatsApp Channel Telegram Channel Facebook Page Instagram
Share with friends & study groups
Link to this page from your website / blog (HTML code)
1.  
A bill dated 30 November 2025 is payable 3 months after date. Its due date is:

Correct Answer: A [3 March 2026]

Explanation:

No 30 Feb → 28 Feb 2026; + 3 days = 3 March 2026.

2.  
Mohan accepted a bill of ₹ 40,000 drawn by Kiran. Kiran endorsed it to Latha, his creditor. On the due date it was dishonoured and Latha paid noting charges of ₹ 150. Kiran's entry is:

Correct Answer: B [Mohan A/c Dr ₹ 40,150, To Latha A/c ₹ 40,150]

Explanation:

Latha held the bill at maturity → credit Latha with bill + noting.

3.  
A bill of ₹ 32,000 was due. Before the due date the acceptor requested renewal: he paid ₹ 12,000 in cash and accepted a 2-month bill for the rest with interest at 15% p.a. included in the bill. The new bill is for:

Correct Answer: D [₹ 20,500]

Explanation:

20,000 × (1 + 15 × 2/1,200) = 20,000 × 1.025 = 20,500.

4.  
A ₹ 30,000 bill is dishonoured with noting charges ₹ 300. The acceptor is declared insolvent; his estate pays 50 paise in the rupee. The drawer receives:

Correct Answer: C [₹ 15,150]

Explanation:

(30,000 + 300) × 0.50 = 15,150 – noting charges are part of the debt.

5.  
Statement-basedIn the drawee's books,
I. No entry is passed when the drawer discounts the bill.
II. No entry is passed when the drawer endorses the bill.
III. On renewal, interest is debited to Interest A/c.
Which are correct?

Correct Answer: B [I, II and III]

Explanation:

Discounting and endorsement are the holder's affairs; interest is an expense of the acceptor.

6.  
For mutual accommodation, P draws a 3-month bill of ₹ 60,000 on Q, discounts it at 12% p.a. and keeps 2/3 of the proceeds, remitting the rest to Q. P's share of the discount is:

Correct Answer: A [₹ 1,200]

Explanation:

Discount 1,800 shared 2 : 1 like the proceeds → P bears 1,200.

7.  
A bill dated 1 January 2026 is payable 90 days after date. Its due date is:

Correct Answer: D [4 April 2026]

Explanation:

Exclude 1 Jan: 30 + 28 + 31 + 1 = 90 → 1 April; + 3 = 4 April 2026.

8.  
True/false countHow many of the following are true?
(i) A promissory note has three parties.
(ii) A bill must be accepted before the drawee is liable on it.
(iii) A bill payable at sight gets three days of grace.
(iv) An accommodation bill arises from a sale of goods.

Correct Answer: C [1]

Explanation:

Answer: 1. Only (ii) is true.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics

📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
Here you get the answer with a one-line explanation. 1,064 original questions with worked answers · Part A Finance & Accounts and Part B Economics & Governance notes · practice sets + 3 mock tests
Get the book – ₹149 ₹299 →
Score: 0 Answered: 0 / 0