Bills of Exchange
In the NCERT Financial Accounting textbook for Class 11, this topic introduces negotiable instruments used in credit trade, chiefly bills of exchange and promissory notes, along with cheques. You learn who the drawer, drawee and payee are, how acceptance works, and what terms like tenure, maturity date and days of grace mean. The lesson covers endorsement, discounting with a bank, retirement, renewal, and dishonour with noting charges. Journal entries for each stage show how the drawer and the drawee record the instrument until it is finally paid or dishonoured.
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