A) Answer in one sentence:
1) What is Bill of Exchange ?
Ans. Written promise given by the buyer or debtor to the seller or creditor to pay a certain
sum of money after a fix period is called Bill of Exchange.
2) Who is Drawer ?
Ans. A person who draws the bill is called drawer.
3) Who is Drawee?
Ans. A person who accepts the bill is called drawee.
4) Who is payee ?
Ans. A person in whose favour the bill is drawn is called payee (A person to whom the bill
amount is payable is called payee)
5) What is a bill called before it is accepted ?
Ans. A bill is called ‘Draft’ before it’s acceptance.
6) When is a bill said to be honoured ?
Ans. When drawee makes payment of the bill on its due date, it is said to be honoured.
, 7) What is dishonour of a bill ?
Ans. Non-payment of bill by drawee on its due date is called dishonour of bill.
8) What is discounting of bill ?
Ans. Selling bill to bank at discount is called discounting of bill.
9) What is retirement of bill ?
Ans. Payment of bill by drawee, before its maturity date is called retirement of bill,
10) What is endorsement of bill?
Ans. Signing on the back side of the instrument (bill) in order to transfer its title (ownership)
is called endorsement.
11) Who is endorser ?
Ans. A person who endorses the bill is called endorser.
12) Who is endorsee?
Ans. A person in whose favour the bill is endorsed is called endorsee.
13) What is due date of Bill of Exchange ?
1) What is Bill of Exchange ?
Ans. Written promise given by the buyer or debtor to the seller or creditor to pay a certain
sum of money after a fix period is called Bill of Exchange.
2) Who is Drawer ?
Ans. A person who draws the bill is called drawer.
3) Who is Drawee?
Ans. A person who accepts the bill is called drawee.
4) Who is payee ?
Ans. A person in whose favour the bill is drawn is called payee (A person to whom the bill
amount is payable is called payee)
5) What is a bill called before it is accepted ?
Ans. A bill is called ‘Draft’ before it’s acceptance.
6) When is a bill said to be honoured ?
Ans. When drawee makes payment of the bill on its due date, it is said to be honoured.
, 7) What is dishonour of a bill ?
Ans. Non-payment of bill by drawee on its due date is called dishonour of bill.
8) What is discounting of bill ?
Ans. Selling bill to bank at discount is called discounting of bill.
9) What is retirement of bill ?
Ans. Payment of bill by drawee, before its maturity date is called retirement of bill,
10) What is endorsement of bill?
Ans. Signing on the back side of the instrument (bill) in order to transfer its title (ownership)
is called endorsement.
11) Who is endorser ?
Ans. A person who endorses the bill is called endorser.
12) Who is endorsee?
Ans. A person in whose favour the bill is endorsed is called endorsee.
13) What is due date of Bill of Exchange ?
