Learn CMA Foundation very important topic of Fundamentals of Accounting What Is Bill Of Exchange Meaning , bill of exchange meaning , Bill of exchange definition
Bill of Exchange Meaning
A bill of exchange means a binding agreement by one party to pay a fixed amount of money to another party as on a specified date or on demand. In other words, it is a written negotiable instrument containing an unconditional order to pay a specified sum of money to a certain person or to the bearer of the instrument, as directed in the instrument by the maker. The bill of exchange is either payable on demand or after a specified period.
Bill of Exchange Example:
M orders N to pay Rs.30,000 for four months after date and N accepts this order by signing his name, then it will be a bill of exchange.
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