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NCERT Solutions for Class 11 Accounting Chapter 8 Bills of Exchange


A bill of exchange is a binding agreement by one party to pay a fixed amount of cash to another party as of a predetermined date or on-demand. This party pays the amount stated on the bill of exchange to the payee.

Drawer: - This party requires the drawee to pay a third party (or the drawee can pay the drawer). According to the Negotiable Instruments Act 1881, ‘a bill of exchange is defined as an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or the bearer of the instrument.’

This chapter also contains more topics which are given - Features of Bill of Exchange, Types of Bill of Exchange, Advantages of Bill of Exchange, Parties of Bill of Exchange, Importance of Promissory note in Bill of Exchange, etc.