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Class 11
Accountancy
Bill of Exchange
write two points of distinction between bills of e...

Question:
Write two points of distinction between bills of exchange and promissory note.

Answer:

Bills of Exchange

a. There may be three parties to it, the drawer, the acceptor and the payee.
b. There is no need of fixing the stamps on the bills payable on demand but otherwise stamps would be necessary.

Promissory Note

a. There are only two parties to it - the maker who draws the note and signs it and the payee to whom the amount is payable.
b. Stamps have to be fixed in any case.

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Mr. Sunrise started a business for buying and selling of stationery with ₹ 5,00,000 as an initial investment. Of which he paid ₹ 1,00,000 for furniture, ₹ 2,00,000 for buying stationery items. He employed a sales person and clerk. At the end of the month he paid ₹ 5,000 as their salaries. Out of the stationery bought he sold some stationery for ₹ 1,50,000 for cash and some other stationery for ₹ 1,00,000 on credit basis to Mr. Ravi. Subsequently, he bought stationery items of ₹ 1,50,000 from Mr. Peace. In the first week of next month there was a fire accident and he lost ₹ 30,000 worth of stationery. A part of the machinery, which cost ₹ 40,000, was sold for ₹ 45,000.

From the above, answer the following :
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7. What is the loss he incurred?
8. Who is the debtor? What is the amount receivable from him?
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Question:
Write two points of distinction between bills of exchange and promissory note.

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Question: Write two points of distinction between bills of exchange and promissory note.

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Question:
Write two points of distinction between bills of exchange and promissory note.