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Question
Answer the following question in one sentence only.
What is an acceptance to bills of exchange?
Solution
A bill is said to be accepted when the drawee of the bill accepts to pay the amount specified in the bill by writing the word "Accepted" on the bill and then returns it to the drawer.
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RELATED QUESTIONS
A bill drawn in India and payable in Japan is a foreign bill.
Ramesh sold goods to Ganesh on credit for Rs. 20,000. Ganesh accepted a bill of Rs. 20,000 for 3 months, drawn by Ramesh on the same date.
On the due date Ganesh dishonoured his acceptance. Then Ganesh approached Ramesh and requested for renewal of the bill.
Ramesh agreed on the condition that Ganesh should pay Rs. 10,000 in cash and accept a new bill for 2 months for the balance amount plus interest Rs. 200.
The new bill was drawn by Ramesh and accepted by Ganesh.
However one month before the due date Ganesh retired his acceptance by paying Rs. 9,900.
Pass necessary Journal Entries in the books of Ramesh.
A bill drawn in India and made payable in America ?
Answer the following question in one sentence only.
What is qualified acceptance?
Write True or False.
Acceptance without making any change in the terms of a bill is called general acceptance.
State whether the following statement is True or False.
Acceptance without making any change in the terms of bill is called general acceptance.
Write the word / term / phrase which can substitute the following Statement.
A bill drawn in India and made payable in Japan.
