Bills of Exchange — Chapter Summary
ICSE · Class 11 · Accountancy
Summary of Bills of Exchange for ICSE Class 11 Accountancy. Key concepts: A bill of exchange is, A promissory note is a written and A cheque is a bill.
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Overview
Bills of exchange, promissory notes, and cheques are negotiable instruments used in credit transactions. They are known as hundis in India and are governed by the Indian Negotiable Instruments Act, 1881. The chapter explains the meaning, parties, features, due date rules, endorsement, discounting, d
Key Concepts
A bill of exchange is
A bill of exchange is a written, signed, unconditional order by a creditor directing a certain person to pay a certain sum of money to a certain perso
A promissory note is a written
A promissory note is a written, signed, unconditional promise by a debtor to pay a certain sum of money to a certain person. It has two parties: maker
A cheque is a bill
A cheque is a bill of exchange drawn on a specified banker and payable only on demand. The drawee is always a bank, and a cheque can be post-dated.
The drawer writes and signs
The drawer writes and signs the bill, the drawee is the person on whom it is drawn and who accepts it, and the payee is the person who receives paymen
An endorser is the holder who
An endorser is the holder who transfers an instrument by signing on the back. The person to whom it is transferred is the endorsee.
Learning Objectives
- To understand the meaning and features of a bill of exchange, promissory note, and cheque.
- To identify the parties to each instrument and their roles.
- To distinguish between bill of exchange, promissory note, and cheque.
- To calculate due date using rules for months, days of grace, and holidays.
- To understand endorsement, discounting, and bills sent for collection.
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Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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