Commerce Aspirant

Not-for-Profit organisations are established to for the welfare of the society and not with the motive of earning any profits. But this does not mean that they are not required to prepare proper accounting records. To comply with the regulation of filing accounting records/ financial statements with the Registrar of Society and to ensure proper … Read more

Not for profit Organisation, are those organizations, that are established to work for the benefit of the society, or for promoting art and culture. Their main objective is to serve the society and earn profit in the due course. Thus, unlike other organizations they are not guided by the profit motive but earning profit is … Read more

Retiring of the Bill refers to the situation where the drawee upon whom the bill of exchange is drawn settles his account with the drawer prior to the expiry date agreed in the bill. This scenario takes place when the drawee of the bill has availability of excess funds which he can use to meet … Read more

The acceptor of the bill in certain situations may find it hard to repay the amount of bill on the due date . In such a situation, therefore the acceptor may  request  the holder of the bill , to substitute the old one with a new bill , which then would allow the acceptor of … Read more

Dishonour of Bill – Meaning Dishonour of the bill , means that the drawee of the bill of exchange on the date of maturity is not able to make the payment for the bill. In such a situation, the holder of the bill can then recover the amount from the drawer , or any other … Read more

Accounting for Bills of Exchange intends to cover the entries in the books of Drawer and Drawee . As Per Negotiable Instrument Act 1881, Bill of Exchange has following characteristics : – It is a negotiable instrument , containing an unconditional order in writing It is signed by maker (creditor/drawer) and directs another person (debtor/drawee) … Read more

Discounting and Endorsement of the Bill Bill of Exchange: Under the Negotiable Instruments Act 1881, a bill of exchange is defined as a written instrument which contains an unconditional order, directing a certain person to pay a defined sum of money to a specified individual  or on the order of a certain person or to … Read more

Maturity of Bill Maturity of bill is the date when the bill of exchange becomes due to be paid. To calculate this date, additional three days are added as a period of grace. Calculation of Due Date of Bill of Exchange Due Date of Bill of Exchange is calculated to find the date , on which … Read more

Advantages of Bill of Exchange: According to the Section 5 of the Negotiable Instruments Act, 1881, a bill of exchange is an instrument which is recorded in writing and which contains an unconditional order, which is signed by the maker, guiding someone in particular to pay a specific total amount of money just to, or … Read more

A promissory note is a signed document which contains a written guarantee or a promise to pay a specific amount to a specified individual at a specified date or on demand. In the Negotiable Instruments Act 1881, a promissory note is defined as an instrument recorded in writing (not being a currency note or a … Read more