Question

When an old bill is cancelled. 2 point
and new bill is accepted by the
drawee for the same amount
but with new terms, it is called
*
as​

Answer 1

Answer:

Features of Bill of Exchange

It is important to have a bill of exchange in writing

It must contain a confirm order to make a payment and not just the request

The order should not have any condition

The bill of exchange amount should be definite

Fixed date for the amount to be paid

The bill must be signed by both the drawee and the drawer

The amount stated on the bill should be paid on-demand or on the expiry of a fixed time

The amount is paid to the beneficiary of the bill, specific person, or against a definite order

Also Read: Important Questions for Bills of Exchange

Types of Bill of Exchange

Documentary Bill- In this, the bill of exchange is supported by the relevant documents that confirm the genuineness of sale or transaction that took place between the seller and buyer.

Demand Bill- This bill is payable when it demanded. The bill does not have a fixed date of payment, therefore, the bill has to be cleared whenever presented.

Usance Bill- It is a time-bound bill which means the payment has to be made within the given time period and time.

Inland Bill- An Inland bill is payable only in one country and not in any other foreign country. This bill is opposite to the foreign bill.

Clean Bill- This bill does not have any proof of a document, so the interest is comparatively higher than the other bills.

Foreign Bill- A bill that can be paid outside India is termed as a foreign bill. Two examples of a foreign bill are an export bill and import bill.

Accommodation Bill- A bill that is sponsored, drawn, accepted without any condition is known as an accommodation bill.

Trade Bill- This kind of bill is specially related only to trade.

Supply Bill- The bill that is withdrawn by the supplier or contractor from the government department is known as the supply bill.

Must Read: Accounting for Bills Exchange

Advantages of Bill of Exchange

Legal Document- It is a legal document, and if the drawee fails to make the payment, it will be easier for the drawer to recover the amount legally.

Discounting Facility- In cases where the drawer is in immediate need of money, the bill can be converted into cash by discounting it from a bank by paying some nominal charges.

Endorsement Possible- This bill of exchange can be exchanged from one individual to another for the adjustment of the debt.

Bill of Exchange Format

bill of exchange format