Retiring a Bill Under Rebate Homework Answers
It is a legal paper which bid a person pay a certain amount of money at the end of the mentioned date to the maker of the paper. It is not a simple paper. It is legalized by the maker so that he/she can force the borrower to pay the money back. It is guided by the Law of Negotiable Instruments Act 1881. Section 5 of this law defines Bill of exchange. But according to the section 13 of the same act define it as a promissory note given to the maker of the bill to the borrower.
With manuals as retiring a bill under rebate homework answers, you can get a better idea in regards to what is the total concept and how to deal with those aspects.
When bill of exchange come into existence
When a borrower is purchasing a finished good, but they do not have enough money, they promise to the maker that they will pay it after a certain period of time. Now comes the part of the guarantee. Bill of exchange will come into existence. So it is very important part of day to day life of a businessman or a professional. Sometimes things soar, and breach happens in the bill of exchange. The complications are severe, but people are not aware of it. This makes it very important to have proper knowledge of accounting.Â Retiring a bill under rebate homework answersÂ will help you a lot in guiding regarding bill of exchange.
What are the features of a bill of exchange?
- It should be written in nature.
- It is legal paper
- It bid the borrower to pay the money to the maker of the bill
- Amount to be paid should be mentioned
- Date of payment should be clearly mentioned in the paper
- The receiver name should also be mentioned.
- It should be signed by the maker of the agreement
- If a maker can ask to pay the money before payment date or not should be mentioned.
- The stamp may or may not be required. If stamp is required, it should be placed on the top of the document.
Important term with respect to the bill of exchange
The person who is a borrower. He is the person who promises to give money to the drawer after a certain period of time. He has purchased the goods and promised to pay it back after a certain period of time. He will sign the bill of exchange.
- Drawer â€“
He is the person who is a lender. He will receive money fromÂ draweeÂ after a certain period of time. He will prepare the bill of exchange.
- Payee â€“
The person to whom the money will be paid. In most of the cases, the payee and drawer are same.
- Date â€“
Date on which the bill of exchange is made and the maturity date both need to be mentioned in the bill of exchange. Mostly on the top, date of preparing a bill of exchange is mentioned for easy noticing.
- Terms â€“
Terms and condition of the bill of exchange should be written in such a language which is easily understood by both parties.
- Amount â€“
The amount whichÂ draweeÂ will pay to the payee should be clearly mentioned in the document. It should be written both in words and numbers. The amount whichÂ draweeÂ has borrowed from drawer also need to be mentioned in the bill of exchange in both words and numericâ€™s.
Sometimes, it may happen thatÂ draweeÂ wants to pay the money in advance. It can be partial or full. In that case manuals asÂ retiring a bill under rebate homework answersÂ will help a lot in understanding the basics of the bill of exchange and how to handle balance sheet in that case.
It is also possible that drawee cannot pay the money on time to the drawee. In that case also,Â retiring a bill under rebate homework answersÂ will help bothÂ draweeÂ and drawer to act according to the law.
Why is the bill of exchange compulsory in a credit business?
- Legal document â€“
If the bill of exchange is not prepared in that case, it is very difficult for the drawer to have faith on the drawer. This legal paper will give you enough confidence and faith, and as well drawee will be bound to give the money on a due date.
If drawee wants to pay the money before the due date, in that case, he/she can.Â Retiring a bill under rebate homework answersÂ will guide them regarding the retiring of the bill of exchange.
- Reduction of confusion â€“
Bill of exchange contains all the details regarding date of payment, amount to be paid, interest to be paid, who to pay the money and on what mode payment need to be done.
If drawee wants to pay the money partially or fully before the due date, he/she can.Â Retiring a bill under rebate homework answersÂ will fully guide you regarding the same.
- Easy credit buying â€“
Credit purchase is difficult to handle. The drawer is at huge risk. Bill of exchange reduces the risk involved in the credit market.
If drawee is unable to pay the money on time,Â retiring a bill under rebate homework answersÂ will help the drawer to act accordingly and tell them the procedure through which they can get their money back. Itâ€™s up to the drawer whether he/she want to extend the time period or not.