Hi friends,
I am currently studying for cpt exam. Can anyone please tell me why promissory notes are not issued to the bearer of the promissory note??
Is the currency of India also a promissory note?
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 30 October 2008
If PN is issued to the bearer, it will then become a currency!
A currency is a Special PN entitling the bearer the value mentioned therein.
Hi!
A Promissory Note cannot be made payable to bearer because Section 31 of the RBI Act, 1934, permits only RBI and Central Govt. to make a PN payable to Bearer on Demand.
Yes currency note a promissory note payable to berarer on demand.
With Regards
Kunal Agrawal
kunalagrawal @ aol.in
9929503735
supriya
(student)
(159 Points)
Replied 30 October 2008
Thank you very much for helping me to solve the query. Then why is bills of exchange payable to bearer?? Will it not become the currency of the country?? Please help I am confused.
Hi!
Bill of exchange can be made payable to bearer but it cannot be made payable to bearer on demand.
A PN is an unconditional promise whereas BOE is an unconditional order.
A PN a made by a person who is required to pay whereas a BOE is made by the creditore i.e. to whom payment is made.
BOE is not a currency note.
With Regards,
Kunal Agrawal
kunalagrawal @ aol.in
9929503735
supriya
(student)
(159 Points)
Replied 02 November 2008
I have one more doubt. While calculating cost of goods in consignment we consider only non-recurring expenses but while calculating cost of goods in joint venture every expense incurred by the joint venturers is considered. Why??
Hi!
Actually right now my PCC papers are going on. I can't give you exact answer.
As per my judgement joint venture is type of business in which both the parties actively participate, hence every expense should be included.
But in case of consignment both the parties do not actively participate. Consignor sent goods to consignee and later on consignee sales the goods. So the recurring expenses will be charged to normal business of the consignee and non-recurring expenses i.e. expenses incurred exclusively for consignment are charged to cost of consignment (as we include any expenditure incurred on acquiring of asset to the cost of that asset).
Remember that I have given the above solutions as per my judgement and knowledge. I have not referred any book. Such questions can be asked to Experts on CAclub.
I have any doubt you can further contact me.
With Regards,
Kunal Agrawal
kunalagrawal @ aol.in
9929503735
supriya
(student)
(159 Points)
Replied 03 November 2008
Thanks Kunal for solving my query. I have asked the question to the experts.
All the best for your exams.
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