PPT - Bills of Exchange Commerce Notes | EduRev

Accountancy Class 11

Commerce : PPT - Bills of Exchange Commerce Notes | EduRev

 Page 1


  
Bill of exchange definition
Bill of exchange 
As per the Indian Negotiable Instruments Act. 
1881
A Bill, of Exchange  is an instrument in writing 
containing an unconditional order, signed by the 
maker, directing a certain person to pay a certain 
sum of money only to, or to the order of, a certain 
person or to the bearer of the instrument.
Page 2


  
Bill of exchange definition
Bill of exchange 
As per the Indian Negotiable Instruments Act. 
1881
A Bill, of Exchange  is an instrument in writing 
containing an unconditional order, signed by the 
maker, directing a certain person to pay a certain 
sum of money only to, or to the order of, a certain 
person or to the bearer of the instrument.
  
CHARACTERISTICS OF BILL OF 
EXCHANGE
1. A bill must be in writing. So an oral order 
cannot be called a bill.
2. The bill must be addressed to a specific 
person.
3. The bill must be contain an order to pay 
money, not a request.
4. The amount shown in the bill must be definite 
and clear. 
5. The date of writing the bill must be clear in the 
bill.
6. The duration of the bill must be definite. 
                                                      
Page 3


  
Bill of exchange definition
Bill of exchange 
As per the Indian Negotiable Instruments Act. 
1881
A Bill, of Exchange  is an instrument in writing 
containing an unconditional order, signed by the 
maker, directing a certain person to pay a certain 
sum of money only to, or to the order of, a certain 
person or to the bearer of the instrument.
  
CHARACTERISTICS OF BILL OF 
EXCHANGE
1. A bill must be in writing. So an oral order 
cannot be called a bill.
2. The bill must be addressed to a specific 
person.
3. The bill must be contain an order to pay 
money, not a request.
4. The amount shown in the bill must be definite 
and clear. 
5. The date of writing the bill must be clear in the 
bill.
6. The duration of the bill must be definite. 
                                                      
  
PARTIES TO A BILL OF 
EXCHANGE 
Normally there are three parties to a bill of 
exchange .
1. Drawer of the bill.
2. Acceptor \Drawee \Payer of the bill. 
3.  Payee of the bill.
 
Page 4


  
Bill of exchange definition
Bill of exchange 
As per the Indian Negotiable Instruments Act. 
1881
A Bill, of Exchange  is an instrument in writing 
containing an unconditional order, signed by the 
maker, directing a certain person to pay a certain 
sum of money only to, or to the order of, a certain 
person or to the bearer of the instrument.
  
CHARACTERISTICS OF BILL OF 
EXCHANGE
1. A bill must be in writing. So an oral order 
cannot be called a bill.
2. The bill must be addressed to a specific 
person.
3. The bill must be contain an order to pay 
money, not a request.
4. The amount shown in the bill must be definite 
and clear. 
5. The date of writing the bill must be clear in the 
bill.
6. The duration of the bill must be definite. 
                                                      
  
PARTIES TO A BILL OF 
EXCHANGE 
Normally there are three parties to a bill of 
exchange .
1. Drawer of the bill.
2. Acceptor \Drawee \Payer of the bill. 
3.  Payee of the bill.
 
  
DETAIL OF A BILL OF 
EXCHANGE
                  1. AMOUNT
                  2. DATE 
                  3. PEROID
                  4. SIGNATURE
                  5. REVENEU STAMP
     
Page 5


  
Bill of exchange definition
Bill of exchange 
As per the Indian Negotiable Instruments Act. 
1881
A Bill, of Exchange  is an instrument in writing 
containing an unconditional order, signed by the 
maker, directing a certain person to pay a certain 
sum of money only to, or to the order of, a certain 
person or to the bearer of the instrument.
  
CHARACTERISTICS OF BILL OF 
EXCHANGE
1. A bill must be in writing. So an oral order 
cannot be called a bill.
2. The bill must be addressed to a specific 
person.
3. The bill must be contain an order to pay 
money, not a request.
4. The amount shown in the bill must be definite 
and clear. 
5. The date of writing the bill must be clear in the 
bill.
6. The duration of the bill must be definite. 
                                                      
  
PARTIES TO A BILL OF 
EXCHANGE 
Normally there are three parties to a bill of 
exchange .
1. Drawer of the bill.
2. Acceptor \Drawee \Payer of the bill. 
3.  Payee of the bill.
 
  
DETAIL OF A BILL OF 
EXCHANGE
                  1. AMOUNT
                  2. DATE 
                  3. PEROID
                  4. SIGNATURE
                  5. REVENEU STAMP
     
  
TYPES OF BILL EXCHANGE
1.Bill payable immediately on demand or bill at 
sight   
2. bill payable after a stipulated period or bill after 
time
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