Transfer of title of a bill from a debtor to a creditor.
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Solution
Endorsement of Bill of Exchange
Explanation: Endorsement means transferring. When a bill of exchange is signed for the purpose of transferring it to another person, then it is termed as an endorsement of a bill of exchange. As and when debtor signs the bill and transfers it to his/her creditor, the endorsee (creditor) becomes entitled to receive the payment.
Concept: Accounting Treatment - Endorsement of the Bill, Honour/ Dishonour and Also Insolvency of Acceptor
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