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Question
Making payment of bill before the due date of maturity is known as ___________.
Solution
Making payment of bill before the due date of maturity is known as Retirement of Bill.
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RELATED QUESTIONS
State True or False with reason:-
Inland bill is one which is drawn in one country and payable in another country.
State True or False with reason:-
A bill of exchange must be presented to the acceptor on the due date.
Find the odd one:-
Find the odd one:-
Amount that cannot be paid by acceptor on account of inslovency is known as __________.
A bill which is drawn and accepted with valuable consideration is known as ___________.
A bill whose due date is calculated from the date of acceptance is known a ___________.
When Drawee accepts the bill payable at a particular place only, it is known as _________.
Answer in one sentence.
What are days of grace?
Answer in one sentence.
What do you mean by discounting a bill of exchange?
Answer in one sentence.
What is noting of the bill?
Answer in one sentence.
What is legal due date?
Answer in one sentence.
What is bills payable on demand?
Define bill of exchange.
Write a short note on:
Endorsement of a bill
Write a short note on:
Discounting of a bill
Find the odd one.
Bela draws a bill for ₹ 2,00,000 on Prihaan for 4 months period. The bill is duly accepted and returned to Bela. One month after the date, Bela discounted the bill with bank @ 18% p.a.
On the due date, Prihaan dishonoured his acceptance. Bank paid noting charges ₹ 4,500. Prihaan requested Bela to renew the bill for further period of 2 months. Bela agreed and took the bill back from bank and received new acceptance for 40% amount of the bill with full amount of noting charges and cheque for 60% balance plus interest @ 12% p.a.
Write Journal of Bela and Prihaan for the above bill transactions.
Sonali draws a bill on Rupali for ₹ 50,000 for 3 months. Rupali accepts the bill on the same date. Sonali sends the bill to the bank for collection. Before the due date, Rupali finds herself unable to make payment of bill and requests Sonali to renew it. Sonali agrees to the proposal on a condition that Rupali should pay ₹ 20,000 in cash along with interest of 1,000 and accept a new bill for 2 months for the balance. Rupali retired the bill by paying ₹ 27,000.
Give Journal entries in the books of Sonali and prepare Rupali's Account in the books of Sonali.
Give Specimen of Bill of Exchange:
- Drawer: Mr. Ram Das, Pune
- Drawee: Mr. Kapil Deo. Mumbai
- Amount: ₹ 1,05,000
- Tenure : 3 Months
- Date of Bill: 3rd March. 2020
- Date of Acceptance: 7th March, 2020
Rajesh sold goods on credit to Sulochana for ₹ 25,000. Rajesh draws a bill for ₹ 25,000 on Sulochana for 3 months. Rajesh discounted the bill with his bank @ 10% p.a. on the same day. On the due date of bill, Sulochana requested Rajesh to accept ₹ 5,000 including ₹ 1,000 for interest and to draw a bill for the balance for 3 months. Rajesh agreed to this proposal. One month before the due date, Sulochana retired the bill for ₹ 20,200.
Pass necessary Journal Entries in the books of Rajesh.
The due date of the bill drawn for 2 months on 23rd Nov. 2019 will be ______.
The due date of the bill drawn for 2 months on 23rd Nov. 2019 will be______.
Give one word/phrase/term which can substitute the following statement:-
Conversion of Bill of Exchange into its present value.
A bill of exchange is a ______.
Give one word/phrase/term which can substitute the following statement:-
Conversion of Bill of Exchange into its present value.
