Question

Conclusion of the project of Bill of exchange

Answer 1

hey

here is your answer

bills of exchange is a simple process of assuring the seller for future payments.

it consists of three parties drawer payer and drawee

A bill of exchange must be in writing. • It is an order to make payment. • The order to make payment is unconditional. • The maker of the bill of exchange must sign it. • The payment to be made must be certain. • The date on which payment is made must also be certain. • The bill of exchange must be payable to a certain person. • The amount mentioned in the bill of exchange is payable either on demand or on the expiry of a fixed period of time. • It must be stamped as per the requirement of law.

hope its help you

Answer 2

heya.. here your answer is...

The holder of the bills of exchange has the following options to dealt with the bill..
1<> Retain the bill till the date of maturity.
when Bill is retained till the date of maturity, the drawer or payee receives the amount from the drawee on the due date. the entry is :
cash or bank a/c .....dr
to bills receivable a/c


2<> Discount the bill with bank
discounting of bills means taking amount against the bill from a bank or private party before the due date. The bank charges an amount for making payment against the bill, which is termed as "discounting charges ".


3<> Endorse the bill in favour of a creditor and
when the holder of a bill transfers the bill to a third party, the bill is said to have been endorsed or negotiated. The person who endorses the instrument is called endorser. The person to whom the instrument is endorsed is called endorsee.


4<> send bill for collection.
person receiving the bill of exchange, may retain the bill till maturity and receive the amount as per bill. if the bill sent to the bank with instructions it is know as Bill send for collection..

hope it helps you..