Definition and Explanation of Bill of Exchange
Definition and Explanation of Bill of Exchange:
A bill of exchange has been defined as an unconditional order in writing addressed by one person to another; signed by the person giving it, requiring, the person to whom it is addressed to pay on demand or at a fixed or determinable future time, a certain sum in money to or to the order of a specified person or to bearer.
Difference Between Inland and Foreign Bills:
The bill of exchange may be inland or foreign. An inland bill is a bill which is both drawn and payable within the a country. A foreign bill is one which is drawn in one country but accepted and payable in another country.
Parties to a Bill of Exchange:
There are three parties in a bill:
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Drawer
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Drawee
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Payee
Specimen/Sample of a Bill of Exchange:
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You may also be interested in other articles from “accounting for bills of exchange page” chapter:
- Definition and Explanation of Bill of Exchange
- Advantages of a Bills of Exchange
- How a Bill of Exchange Functions
- Promissory Note
- Difference between Bill of Exchange and Promissory Note
- Difference Between Bill of Exchange and Cheque/Check
- Recording Transactions of Bill of Exchange
- Drawing, Acceptance, and Payment of Bill of Exchange
- Discounting of Bill of Exchange
- Bills of Exchange for Collection
- Endorsement of a Bill of Exchange
- Dishonour of a Bill of Exchange
- Renewal of a Bill of Exchange
- Retiring of a Bill of Exchange
- Accommodation Bill of Exchange
- Insolvency of the Acceptor in a Bill of Exchange
Other Related Accounting Articles:
- Difference Between Bill of Exchange and Promissory Note
- Difference Between Bill of Exchange and Cheque/Check
- Recording Transactions of Bill of Exchange
- Drawing, Acceptance, and Payment of Bills of Exchange
- Endorsement of Bill of Exchange
- Promissory Note
- Renewal of a Bill of Exchange
- Accounting For Bills of Exchange
- Advantages of Bills of Exchange
- Accommodation Bills of Exchange
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