Bill of exchange- It is a writing instrument containing unconditional order to pay certain sum of money. It signed by drawer or creditor and accepted by debtor. In bill of exchange three parties are involved- Drawer - A person or organization who give the order to drawer to pay the bill amount which drawn by drawer Or creditor. Drawee Or acceptor - A person who accept the bill drawn by drawer and make payment on order. Payee - A payee is a person who gets the payment at the time of maturity. Some important features are: The drawer, drawer must be certain. Bill of exchange must be stamped. It also contain order to pay money alone. Bill of exchange classified into three parts: Inland and foreign bills- Inland bills includes- bill is drawn in India on a person residing in India whether payable in or outside India. Or Bill drawn in India on a person residing outside India but payable in India. Foreign bill- Bill which is not inland bill is a foreign bill. It includes Bill drawn i
This blog is totally for education purpose which helps to solve finance related numerical like time value of money, annuity ,perpetuity, technique of capital budgeting, cost of capital, working capital management and hire purchase etc.