Chapter 8: Bill of Exchange

Question

1. What is meant by maturity of a bill of exchange?

2. What is meant by dishonour of a bill of exchange?

3. What is Noting of a bill of exchange.

4. Give the performa of a Bills Receivable Book.

5. Give the performa of a Bills Payable Book.

Answer 1

1. The maturity of a bill of exchange  refers to the date on which a bill of exchange or a promissory note becomes due for payment. 

2. Dishonour of a bill, happens when the acceptor of the bill fails to make the payment on the date of maturity of the bill. Hence, liability of the acceptor is restored. 

3. Noting of the bill is recording the facts of its dishonour by a Notary public. 

4. 

Serial number of Bill	Date received	Date of bill	Received from whom	Drawer	Acceptor	Wherever payable	Term

5. 

Serial number of Bill	Date of bill	Given to whom	Drawer	Payee	Payable where	Term of bill	Due date	Ledger Folio