Practise 19 real Federal Board questions on Bills of Exchange from 2023 to 2026. See the answer and explanation as soon as you answer.
Bills of Exchange is one of the 10 main chapters in our Federal Board I.Com Accounting question bank (11th class), and about 5% of its real questions come from it. Tayyari Karo has 19 real questions on this chapter from 2023 to 2026; 10 are multiple choice and marked instantly, and the rest are short and long questions with a model answer. By difficulty: 11 medium, 5 easy, 3 hard.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
These are real past-paper questions. Think of your answer first, then open the explanation.
If the drawer is in need of money and cannot wait till due date and receive the money from bank is called:
Answer: C. Discounting of bill
Discounting a bill means selling it to the bank before maturity to receive cash immediately, less a discount charge.
The period of time after which a bill becomes payable is called:
Answer: C. Usance
Usance is the period of time (tenure) after which a bill of exchange becomes due/payable.
A person who writes out the order to pay is called:
Answer: C. Drawer
The drawer is the person who writes/draws the bill of exchange, ordering the drawee to pay a certain sum.
In case of retirement of bill, the rebate or discount is a revenue for the:
Answer: D. Acceptor
When a bill is retired before maturity, the rebate (discount for early payment) is an income/saving for the acceptor, who pays a lesser amount than the bill's face value.
In case of term bill the extra three days are given to acceptor are called:
Answer: A. Grace days
Three extra days (days of grace) are legally allowed beyond the term of a bill before it becomes due for payment.
When the bill is dishonoured acceptor's account is debited in the books of the:
Answer: D. Drawer
On dishonour, the drawer (holder of the bill) debits the acceptor's/drawee's personal account to reverse the earlier credit and reclaim the debt.
What is meant by 'bill of exchange'?
A bill of exchange is a written, unconditional order signed by the drawer, directing the drawee to pay a certain sum of money, on demand or at a fixed/determinable future date, to a specified person (payee) or to his order/bearer. It must be accepted by the drawee to be enforceable.
Briefly discuss the term 'Days of Grace'.
Days of Grace are three extra days customarily and legally allowed to the acceptor of a bill of exchange, beyond the specified term of the bill, before it becomes due for payment. Thus the maturity date of a bill is calculated as the nominal due date plus three days of grace.
| Session | Questions |
|---|---|
| 2026 Annual | 2 |
| 2025 1st Annual | 4 |
| 2025 2nd Annual | 4 |
| 2024 Annual | 3 |
| 2023 Annual | 6 |
19 real Federal Board (FBISE) Accounting questions on Bills of Exchange from 2023 to 2026, for 11th class. Each one shows the session it came from.
No. We could not find an official FBISE marking scheme for these papers, so the answers and explanations are written by Tayyari Karo for practice. Check anything important with your teacher or textbook.
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