Question

Preparation of report on various treatments of Bill of exchange (Trade bill ) Need and importance

Answer 1

Explanation:

Among the two types of Bills of exchange from the accounting point of view, Trade bill is one of its type.

Trade Bill

When the bill of exchange is drawn and accepted to settle a trade transaction, it is called Trade bill.

Importance

This bill of exchange is drawn by the seller of the goods and is accepted by the buyer. All other parameters such as goods guarantee or return policy is defined. This is done to make business transaction transparent and avoid any conflicts afterwards