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What is meant by acceptance of a bill of exchange? - Accountancy

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प्रश्न

What is meant by acceptance of a bill of exchange?

थोडक्यात उत्तर
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उत्तर

A bill of exchange is a written instrument which contains an unconditional order directing a person to pay a certain amount on an agreed date.

In other words, it is drawn by the creditor on her/his debtors to make a payment of a certain amount on the mentioned date.

Such a bill comes into existence after the consent of both the parties.

A bill cannot come into existence without the acceptance of a debtor.

Hence, the debtor of the bill has to accept the terms of the bill, sign the same and make it a legal document.

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