CA Foundation Exam > CA Foundation Questions > Which of the following statement is true:a)Cr...
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Which of the following statement is true:
- a)Creditors can draw a bill on Debtors
- b)Debtors can draw a bill on Creditor
- c)Bank will draw a bill on customer at the time of overdraft
- d)One can draw the bill on another under any circumstances
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Which of the following statement is true:a)Creditors can draw a bill o...
Introduction:
The Bill of Exchange is a written document that represents a promise to pay a certain amount of money to the person mentioned in the document. It is a widely used financial instrument in the business world to facilitate the transactions between parties.
Creditors can draw a bill on Debtors:
A creditor is a person who lends money or provides goods or services to another person, known as a debtor. When a creditor sells goods or services to a debtor, they may draw a bill of exchange on the debtor. This means that the creditor is asking the debtor to pay the amount mentioned in the bill of exchange on a specific date.
Debtors cannot draw a bill on Creditor:
A debtor cannot draw a bill of exchange on a creditor as the debtor is the one who owes the money to the creditor. The creditor has the right to draw a bill of exchange on the debtor to collect the amount due.
Bank will draw a bill on customer at the time of overdraft:
When a customer overdraws their account, the bank may draw a bill of exchange on the customer to recover the amount of the overdraft. This is known as a bank draft or a banker's acceptance.
One cannot draw the bill on another under any circumstances:
It is not possible for one person to draw a bill of exchange on another person without their consent. The bill of exchange must be drawn by the creditor on the debtor, and the debtor must accept the bill before it becomes a legally binding document.
Conclusion:
In conclusion, creditors can draw a bill of exchange on debtors to collect the amount due. Banks may draw bills of exchange on customers who overdraw their accounts. It is not possible for debtors to draw bills of exchange on creditors or for one person to draw a bill on another without their consent.
The Bill of Exchange is a written document that represents a promise to pay a certain amount of money to the person mentioned in the document. It is a widely used financial instrument in the business world to facilitate the transactions between parties.
Creditors can draw a bill on Debtors:
A creditor is a person who lends money or provides goods or services to another person, known as a debtor. When a creditor sells goods or services to a debtor, they may draw a bill of exchange on the debtor. This means that the creditor is asking the debtor to pay the amount mentioned in the bill of exchange on a specific date.
Debtors cannot draw a bill on Creditor:
A debtor cannot draw a bill of exchange on a creditor as the debtor is the one who owes the money to the creditor. The creditor has the right to draw a bill of exchange on the debtor to collect the amount due.
Bank will draw a bill on customer at the time of overdraft:
When a customer overdraws their account, the bank may draw a bill of exchange on the customer to recover the amount of the overdraft. This is known as a bank draft or a banker's acceptance.
One cannot draw the bill on another under any circumstances:
It is not possible for one person to draw a bill of exchange on another person without their consent. The bill of exchange must be drawn by the creditor on the debtor, and the debtor must accept the bill before it becomes a legally binding document.
Conclusion:
In conclusion, creditors can draw a bill of exchange on debtors to collect the amount due. Banks may draw bills of exchange on customers who overdraw their accounts. It is not possible for debtors to draw bills of exchange on creditors or for one person to draw a bill on another without their consent.
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Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer?
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Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer?.
Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Which of the following statement is true:a)Creditors can draw a bill on Debtorsb)Debtors can draw a bill on Creditorc)Bank will draw a bill on customer at the time of overdraftd)One can draw the bill on another under any circumstancesCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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