Tag Archives: due date

Bill of Exchange Important Question 7 for I.Com Part 1

Bill of Exchange Important Question 7 for I.Com Part 1 Adil sold goods to Karim for Rs. 10,000 and drew a bill upon him for 3 months. Karim returned the bill to Adil after accepting it and Adil discounted the bill with his bank at 9% p.a. On the due date the bill was dishonored. Required: Pass entries in the …

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Define bills of exchange

Define bills of exchange A written order to pay a sum of money on a given date to the drawer or to a named payee; a promissory note Or A written, unconditional order by one party (the drawer) to another (the drawee) to pay a certain sum, either immediately (a sight bill) or on a fixed date (a term bill), …

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Define Drawing

Define Drawing The withdrawal of business cash or other assets by the owner for the personal use of the owner. Withdrawals of cash by the owner are recorded with a debit to the owner’s drawing account and a credit to the cash account. Source: http://www.accountingcoach.com/terms/D/draw.html Or We use drawing many times in financial accounting. Drawing here means any amount withdraws …

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Define Renewal of a Bill of Exchange

Define Renewal of a Bill of Exchange Sometimes, acceptor of a bill finds him unable to meet his acceptance on the due date. So he may approach the drawer of the bill before the maturity date arrives, to cancel the old bill and draw a new bill with extended date. The acceptor in this case will of course have to …

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What is meant by maturity?

What is meant by maturity? The date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due and is repaid to the investor and interest payments stop. It is also the termination or due date on which an installment loan must be paid in full. Source: http://www.investopedia.com/terms/m/maturitydate.asp

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