What is a Bill of Exchange? Why is it used?
Answers were Sorted based on User's Feedback
Answer / deepa parmar
bill of Exchange is a money instrumenet, used to raise the
moeny from the banks and other financial institutions by
raising the bill of the goods sold..
Thanks & Regards,
Deepa Parmar..
Is This Answer Correct ? | 2 Yes | 1 No |
Answer / chinmaya
a "bill of exchange" or a "Hundi" is a kind of legal
negotiable instrument used to settle a payment at a future
date. It is drawn by a drawer on a drawee wherein drawee
accepts the payment liability at a date stated in the
instrument. The Drawer of the Bill of Exchange draw the
bill on the drawee and send it to him for his acceptance.
Once accepted by the drawee, it becomes a legitimate
negotiable instrument in the financial market and a debt
against the drawee. The drawer may, on acceptance, have the
Bill of Exchange discounted from his bank for immediate
payment to have his working capital funds. On due date, the
bill is again presented to the drawee for the payment
accepted by him, as stated therein the bill.
Is This Answer Correct ? | 1 Yes | 0 No |
Answer / hassan
Investor Words defines Bills of Exchange as an unconditional
order issued by a person or business which directs the
recipient to pay a fixed sum of money to a third party at a
future date. The future date may be either fixed or
negotiable. A bill of exchange must be in writing, signed
and dated. It is also called a draft.
Is This Answer Correct ? | 1 Yes | 0 No |
Answer / nicholas
A bill of exchange is a document that is sometimes used in
home trade, but it is most commonly used in foreign trade.
it is particularly used in the settlement of international
debts. the bill of exchange is made out by the
seller/exporter (the creditor) of goods requiring that the
buyer/importer (the debtor) pays a sum of money on demand,
or on n agreed future date (usually after three months).
both the buyer and the seller benefit from the use of bill
of exchange. the buyer obtains credit on the transaction,
and the seller benefits because instead of waiting for
payment he can either sell the bill at a 'discount',
'negotiate' it by using it to pay off his own debts, or use
it as collateral against a bank loan.
Is This Answer Correct ? | 1 Yes | 0 No |
Answer / akram raja
Bills of exchange is an instrument given seller of the
goods.its prepared for a future payment of the bill when the
goods are bought in a credit
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / ayush mundhra
It means that the bill of exchange is drawn by a person
directing another person to pay the specified sum of money.
It is an acknowledgement of debt which also fixes the date
of payment.It is a legal document which is drawn up and
signed by seller.
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / jagbir
a bill of exchange is an instrument in writing, an unconditional order signed by the maker directing to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / mohd asif
hiii friends,
bill of exchange is an promisory note/negotiable document in which seller draw against purchase of goods where in credit is given to the creditor....
objective is...
to give credit to the creditor
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / attaniea sarasta
Bill of exchange is payment method, u can choose this
optional : bank guarantee, cheque or giro
cheers
Is This Answer Correct ? | 13 Yes | 32 No |
What are the options in sap for fiscal years?
how to control transport cost with sale invoices :- I want to know how to map tranport cost with respective sale invoices. This help us to avoid duplicate transport payment. As in PO freight condition is maintained ,is there is anyway to link or map transport cost with sale invoices
What are statistical key figures in co?
7) what is the difference between configuration and customization ?
hello friends i have completed sap fico and i learnt fico subject qustions but i cannot getting sap fico project qustions plz anybody help me
How profit center accounting is diffrent in New G/L and in 4.7
What are the noted items..How can we create? what are the advantages of Noted Items?
iam learing fico, while custamizing Automatic payment, after i run payment run, it showing as payment run created but amount is not getting transfer or paid to vender. what could be the problem, first i have given run date and posting date different, but still same no error but amount not getting posted. pls advice me
What is Trading partner? why we use this, usually which will come whenever we configure vendor/customer/posting of any invoice etc.
Hi SAP experts...I am new to CO and i am learning it by installing SAP in my own system...can any body advice me how to start with CO, like which one i configure first and then next steps. it will be very helpful to me if somebody advice. Thanks, Rajendran.
waht is mean by delta depreciationm what is use
Is there any possibility to copy (into secondary storage devise) the data of company . Please advise