Enterprises) is a written document that serves as a payment instrument. It is a written order by one party (the drawer) to another party (the drawee) to pay a specified amount of money to a third party (the payee) at a predetermined future date or on demand.

In this case, the bill of exchange received from Raja Enterprises represents a promise by Raja Enterprises to pay a certain amount of money to the holder of the bill (the payee) at a later date. The bill of exchange usually includes details such as the amount of money to be paid, the date of payment, and the signatures of the parties involved.

The payee can choose to hold onto the bill until the due date and then present it for payment to Raja Enterprises or they can transfer the bill to another party by endorsing it. This allows for the bill of exchange to be used as a form of payment in commercial transactions. The payee can also choose to discount the bill by selling it to a third party at a discounted value before the due date, which provides immediate cash flow.

The bill of exchange is a commonly used financial instrument in international trade, as it allows for secure and flexible payment arrangements between parties located in different countries. It provides assurance to the payee that they will receive payment for goods or services provided, and it allows the drawer to defer payment until a future date.

Overall, a bill of exchange received from Raja Enterprises represents a legal commitment by Raja Enterprises to make a payment to the payee at a later date and serves as a valuable financial instrument in commercial transactions.

Raja & co. A/c Dr 20,000
To Bank A/c. 20,000
(Being bills receivable accounts wrongly debited now rectified)