SSC CGL Finance – Bills of Exchange – Exam-Level Drill

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SSC CGL Finance – Bills of Exchange – Exam-Level Drill – 10 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.

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1.  

Directions (Q 36–38): On 10 June 2026 Divya draws a bill of ₹ 48,000 on Ezhil at 3 months after date; Ezhil accepts it the same day. On 13 July 2026 Divya discounts it with her bank at 12% p.a. (discount for the unexpired days, 365-day year). The bill is dishonoured on the due date; the bank pays noting charges of ₹ 200.

Data tableThe legal due date of the bill is:

Correct Answer: B [12 September 2026]

Explanation:

10 Sept + 3 = 13 Sept 2026 is a Sunday → 12 September 2026.

2.  
(Use the directions above – Q 36–38)
Data tableThe discount charged by the bank (nearest rupee) is:

Correct Answer: A [₹ 963]

Explanation:

Unexpired 61 days (13 July → 12 Sept): 48,000 × 12% × 61/365 ≈ 962.63 → ₹ 963.

3.  
(Use the directions above – Q 36–38)
Data tableDivya's entry on dishonour is:

Correct Answer: D [Ezhil A/c Dr ₹ 48,200, To Bank A/c ₹ 48,200]

Explanation:

The bank held the bill; it recovers the full face value + noting.

4.  
A bill of ₹ 50,000 is dishonoured (noting ₹ 250). The acceptor pays ₹ 10,250 and accepts a 2-month bill for the balance plus interest at 18% p.a. This bill is also dishonoured, and the acceptor's estate pays 60 paise in the rupee. The final bad debt is (ignore noting on the second bill):

Correct Answer: A [₹ 16,480]

Explanation:

New bill 40,000 × 1.03 = 41,200; 40% lost = 16,480.

5.  
Which statement about retirement of a bill is correct?

Correct Answer: C [The drawer debits Rebate A/c and the acceptor credits Rebate A/c]

Explanation:

Drawer: Bank Dr + Rebate Dr, To B/R.

6.  
Reverse questionAn acceptor retired a bill 2 months early at a rebate of 12% p.a. and paid ₹ 29,400. The face value of the bill was:

Correct Answer: B [₹ 30,000]

Explanation:

Paid = FV × (1 − 12 × 2/1,200) = 0.98 FV → FV = 29,400 ÷ 0.98 = 30,000.

7.  
A bill dated 12 April 2026 at 4 months after date: the due date is 15 August 2026 (holiday). The holder presents it on 17 August and is refused. Correct view:

Correct Answer: D [The bill was due on 14 August 2026; presenting it on that day was required]

Explanation:

12 Aug + 3 = 15 Aug (holiday) → preceding business day, 14 August.

8.  
Kumar sent Vimal's acceptance of ₹ 12,000 to his bank for collection; the bank collected it and charged ₹ 50. Kumar's entry on collection is:

Correct Answer: B [Bank A/c Dr ₹ 11,950 + Bank charges A/c Dr ₹ 50, To Bills Sent for Collection A/c ₹ 12,000]

Explanation:

The bill was earlier moved to 'Bills sent for collection'; that account is closed.

9.  
Arun (drawer) has two bills on Bala: ₹ 10,000 kept in hand and ₹ 15,000 endorsed to Chitra. Both are dishonoured at maturity (no noting). Total credited to Bills Receivable A/c and to Chitra's A/c respectively:

Correct Answer: A [₹ 10,000 and ₹ 15,000]

Explanation:

Credit the holder at maturity: the kept bill → B/R; the endorsed bill → Chitra.

10.  
Statement-basedUnder the NI Act, 1881,
I. 'Public holiday' includes Sundays.
II. A bill falling due on a public holiday is payable on the next succeeding business day.
Which is/are correct?

Correct Answer: C [Only I]

Explanation:

s. 25: the next preceding business day.

➤ 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)
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