Answer:

In the context of bills of exchange, which are negotiable instruments used in commercial transactions, the correct statement is option 'A': Creditors can draw a bill on Debtors.

Explanation:

1. Bills of Exchange:
A bill of exchange is a written order from one party (the drawer) to another (the drawee) to pay a specified sum of money to a third party (the payee) at a future date. It is a legally binding document that facilitates the transfer of funds in business transactions.

2. Parties involved in a Bill of Exchange:
- Drawer: The person who creates and signs the bill, instructing the drawee to make the payment.
- Drawee: The person or entity on whom the bill is drawn, who is obligated to make the payment.
- Payee: The person or entity to whom the payment is to be made.

3. Creditors drawing a bill on Debtors:
In certain situations, creditors may choose to draw a bill of exchange on their debtors. This means that the creditor becomes the drawer and instructs the debtor (the drawee) to make the payment to the specified payee. By doing so, the creditor can secure a written acknowledgment of the debt and ensure timely payment.

Example:
Let's say Company A has provided goods to Company B on credit terms. Company A can draw a bill of exchange on Company B, making Company B the drawee. The bill would state that Company B is required to pay a specific amount to Company A or a designated payee on a future date. Company B, as the debtor, would then be legally obligated to make the payment.

4. Other options explained:
- Option 'B': Debtors can draw a bill on Creditors: This statement is incorrect as it is the creditors who typically draw bills on debtors, not the other way around. The debtor's role is to accept or acknowledge the bill drawn on them.
- Option 'C': Bank will draw a bill on customer at the time of overdraft: This statement is incorrect as bills of exchange are not typically used in the context of overdrafts. Overdrafts involve the bank allowing a customer to withdraw more funds than they have in their account, resulting in a negative balance. It does not involve the drawing of bills.
- Option 'D': One can draw the bill on another under any circumstances: This statement is incorrect as the drawing of bills of exchange follows specific legal and commercial requirements. It cannot be done under any circumstances without proper authorization and adherence to the laws governing bills of exchange.