Question
When a bill is discounted with the bank, the party that
bears the loss if the bill is dishonored at maturity is the:Solution
When a drawer discounts a bill with the bank, they receive immediate payment at a discount. If the bill is dishonored at maturity by the drawee, the drawer (being the endorser to the bank) bears the ultimate loss and is liable to pay the bank.
A bill of exchange drawn on 15th March for 2 months will mature on:
The term 'Days of Grace' in relation to a bill of exchange refers to:
The person who draws a bill of exchange is called the:
Mr. A draws a bill of exchange for ₹1,00,000 on Mr. B for 90 days. Mr. B accepts it and it is discounted by Mr. A from the bank. On maturity, Mr. B fa...
Mr. X draws a bill on Mr. Y for ₹1,00,000 payable after 3 months. Mr. Y accepts the bill but fails to honour it on maturity. What is this act called i...
The person in whose Favor a bill is endorsed is called:
Noting charges are ultimately borne by the:
Accounts relating to income, revenue, gain expenses, and losses are termed as:
A bill of ₹50,000 discounted @12% p.a. for 3 months. Bank discount = ?
A negotiable instrument as per the Negotiable Instruments Act, 1881 includes:
