what is the difference between bill of exchange and promissory note.
Menu
bill of exchange and promissory note
Replies (3)
The fundamental difference is as under:
A Bill of exchange is drawn by the person giving credit and is accepted by the person availing the credit in the favour of the drawer or his order to pay the beneficiary on certain future date.
A promissory note however is drawn by the borrower in favour of his creditor to pay on demand.
|
Bill Of Exchange
|
Promissory Note
|
|
There are three parties namely drawer, drawee and payee
|
There are only two parties viz maker and payee
|
|
The drawer and payee may be the same person
|
Maker cannot be the payee
|
|
There is an unconditional order to drawee to pay according to the drawer’s direction
|
Contains an unconditional promise by the maker to pay to the payee or to his order
|
|
Payable after sight must be accepted by the drawee or someone else on his behalf before it can be presented for payment
|
Presented for payment without any prior acceptance by the maker
|
|
The liability of the drawer is secondary and conditional
|
Liability of a maker of promissory note is primary and absolute.
|
Respected Intellectuals,
Would someone please tell me what is "Diluted EPS" ?
Thanking You
Recent Threads
- UNCLAIMED TDS REFUND QUERY
- Rcm payable which head
- Query of GST
- Long Term Capitalgains on sale of residential prop
- How Salaried Individuals Can Reduce Capital Gains
- NSTPI registration
- GST PAID IN DELHI
- How to Trade Forex in India?
- TDS - requirement of TDS by individual under presu
- Normal Register in GST in delhi in gujarat no rece
Related Threads
CAclubindia
