State the three parties involved in a bi | Class 11 Accountancy Chapter Bill of Exchange, Bill of Exchange NCERT Solutions

Question:

State the three parties involved in a bill of exchange.

Answer:

  1. Drawer: He is seller or creditor entitled to receive money from someone. He writes or draws the bill and is known As drawer. The bill of exchange is signed by the drawer of the bill.
  2. Drawer or Acceptor: He is the purchaser or the debtor on whom the bill is drawn and who is liable to pay the amount mentioned in the bill. He accepts to pay the amount by writing the word “Accepted” on the bill and then signs it. A bill is called a draft before it is accepted.
  3. Payee: The person to whom the payment is to be made is called payee. The drawer himself or a third party may be the payee of the bill.


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  • Read the question carefully and focus on the core concept being asked.
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Welcome to the NCERT Solutions for Class 11 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 4: State the three parties involved in a bill of exchange.....