Question
Explain the difference between Bill of Exchange and Promissory Note.
| Difference | Bill of Exchange | Debtor writes promissory note on creditor. |
| $1.$ Meaning | A bill of exchange is an instrument in writing containing an unconditional order, ****** by the drawer, directing a certain person to pay a certain sum of money only at a specified time to a ******* person or according to *** order or to the holder of the instrument. | The acceptance of a promissory note is not necessary. |
| $2.$ Order or Promise | A bill of exchange ** an unconditional ***** to pay money. | ************** for the payment ** money is ** the drawer of a promissory note. |
| $3.$ Parties | There are three parties in a bill of exchange: 1. Drawer of a bill, 2. Acceptor of a **** 3. Receiver of ***** (Payee) | No days of grace are allowed In case of promissory note. |
| $4.$ Drawer or Writer | Creditor draws *** bill on debtor. | A ********** note is a ********* for the writer of promissory note. |
| $5.$ Acceptance | The acceptance of a bill is necessary. | There *** no accommodation ********** note. |
| $6.$ Responsibility | ************** for the payment of money is of *** acceptor of a bill, | There ** no need of notice for the dishonour of a promissory note. |
| $7.$ Days of grace | Three days of ***** are allowed after the period of the bill ** pay the amount. | Debtor ****** promissory note on creditor. |
| $8.$ Receivable or Liability | A bill is a ‘receivable’ (asset) for the drawer ** a bill. | The acceptance of a ********** note ** not necessary. |
| $9.$Accommodation | There *** be ************* bills. | Responsibility for *** ******* of money is of the drawer of a promissory note. |
| $10.$ Notice | Notice ** to be issued in case of dishonour of the bill. | No days of grace are allowed In case of promissory note. |
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
| $1$ | Paid $Rs.500$ for refreshment at inaugural function of shop. |
| $2$ | Purchased necessary books of accounts of $Rs.400$ for business. |
| $3$ | Paid $Rs.200$ for wages and $Rs.100$ for carriage. |
| Pass necessary rectification entries to rectify the following journal entries written by Ishwarlal: | |||||
| Date | Particulars | L.F. | Debit(Rs.) | Credit (Rs.) | |
| $1$ | Kishan’s A/c. | Dr. | $7,000$ | ||
| To Cash A/c. | $7,000$ | ||||
| (Being the salary of current month $Rs.7,000$ paid to Kishan) | |||||
| $2$ | Purchase A/c. | Dr. | $9,500$ | ||
| To Clinton's A/c. | $9,500$ | ||||
| (Being the goods of $Rs.9,500$ sold to Clinton on credit) | |||||
| $3$ | Purchase A/c. | Dr. | $17,100$ | ||
| To Cash A/c. | $17,100$ | ||||
| (Being the goods worth $Rs.20,000$ purchased at $10\%$ trade discount and $5\%$ cash discount) | |||||
| Total | $33,600$ | $33,600$ | |||