Archive | Bill of Exchange

Accounting Treatment of Bill of Exchange

Here we detail about the five heads for accounting treatment of bill of exchange, i.e., (I) On the Due Date, Bill is Honoured; (II) On the Due Date, Bill is Dishonoured; (III) Renewal of Bill; (IV) Retiring of Bill; and (V) Insolvency of Acceptor. I. On The Due Date Bill Is Honoured: The accounting treatment […]

Promissory Note: Definition, Features and Parties

Let us make in-depth study of the definition, features and parties of a promissory note. Definition of Promissory Note: “A promissory note is defined as an instrument in writing (not being a bank note or a currency note), containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to […]

Bills of Exchange: Features, Contents and Advantages

Let us make in-depth study of the definition, features, contents, parties and advantages of bills of exchange. Definition of Bills of Exchange: A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the […]

Difference between Bill of Exchange and Promissory Note

Here we detail about the difference between bill of exchange and promissory note. Bill of exchange: 1. In the case of bill of exchange, there may be three parties, viz., the drawer, the drawee and the payee. 2. Bill of exchange contains an order to make the payment. 3. Bill of exchange is drawn by […]

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