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Chapter Summary

Bills of Exchange

ICSE · Class 11 · Accountancy

Summary of Bills of Exchange for ICSE Class 11 Accountancy. Key concepts, important points, and chapter overview.

63 questions42 flashcards5 concepts

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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.

Frequently Asked Questions

What are the important topics in Bills of Exchange for ICSE Class 11 Accountancy?
Bills of Exchange covers several key topics that are frequently asked in ICSE Class 11 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Bills of Exchange — ICSE Class 11 Accountancy?
Understand the core concepts first, then work through the 63 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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All 28 chapters — ICSE Class 11 Accountancy Chapter Summary

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