Unit-5 Bills Of Exchange

In this unit we shall first discuss the nature of various instruments of credit including bills of exchange and promissory notes.

What do you understand by Bills Sent for Collection?

What is an accommodation bill?

Differentiate between a Bill of Exchange & a Promissory Note? State their importance for the modern business?

What do you mean by discounting of a bill?

Why do you maintain bill books? State the transactions recorded in Bills Receivable & Bills Payable Journals.

What is the purpose of noting on the bill? Is it necessary in case of a promissory note?

What is an accommodation bill?

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Bills drawn to accommodate or help a fellow businessman are called accommodation bill.