Question

what is renewal of bill ?

Answer 1

Sometimes, acceptor of a bill finds himself unable to meet his acceptance on the due date. So he may approach the drawer of the bill before the maturity date arrives, to cancel the old bill and draw a new bill with extended date. The acceptor in this case will of course have to pay interest for the extended period. Thus the cancellation of the old bill maturity in return for a new bill (which includes interest) for an extended period is called "renewal of a bill of exchange".

There are two more ways to renew a bill of exchange:

The acceptor pays interest in cash and a new bill is accepted equal to the amount of the old bill.

The acceptor pays a part of the amount of the bill in cash and accepts a new bill for the balance plus interest.

Answer 2

The cancelation of an old bill maturity in return of a new bill for an extended period is called "Renewal of Bill".
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Hope it helps ^^..
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