Accountancy

Bill Of Exchange Format

Bill Of Exchange Format – Hello friends, welcome again, today we are going to share Specimen of bill of exchange. Features of Bill Of Exchange is also given below. Check it out Fast.

' Bill of exchange format ' ' Format of bill of exchange ' ' Specimen of bill of exchange '

Features of Bill of Exchange Format

  1. A bill must always be in writing.
  2. A bill is unconditional, i.e., there is no condition attached to it.
  3. A bill is an order letter. It is drawn by the creditor on the debtor and it is in the form of an order and not a request.
  4. A bill must be signed by the drawer as well as the drawee.
  5. A bill is drawn in the form of an order to pay a fixed sum of money.
  6. A bill is payable to the person specified therein, or to the order of the specified person or to the bearer as the case may be.
  7. A bill of exchange is payable either on demand or after the expiry of the specified duration.
  8. A bill of exchange should be properly stamped.
  9. It is preferable to write “the value in the bill has been received” on the face of the bill , even though it is not required by law.

Parties to the Bill of Exchange

(1) Drawer  – He is the 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) Drawee 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 . The drawer will be the payee of the bill , if he retains the bill till the date of maturity and receives the payment . The bank may also be the payee of the bill if the bill is discounted from the bank . In case the bill is endorsed by the drawer to a third party , the third party known as endorsee will be the payee of the bill . As such , the drawer himself or the bank or the endorsee may be the payee of the bill .

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