BILL OF EXCHANGE

Goods
Exporter

by MONIKA
CHOUDHARY
Business Studies for Class XI
Topic Discussed
Bills of Exchange
 Introduction
 Definition
 Features
 Introduction
In modern times a very large number of
business transactions are made on credit
basis.In case of credit sale of goods,the
purchaser usually promises to make payment
after a certain period.In such a case,the seller
would like to get a written undertaking from
the buyer to get the payment after a fixed
period.
This is where the bills of exchange comes
into the picture.
 Definition
“A Bill of exchange is an
instrument in writing containing
an unconditional order signed by
the maker, directing a certain
person to pay a certain person to
pay a certain sum of money to,or
to the order of,a certain person or
to the bearer of the instrument.”
 SPECIMEN OF BILL OF EXCHANGE
Rs. 10,000
New Delhi, March 15, 1997
Stamp

Three months after date pay Gopal Chand or order

the sum of ten thousand Rupees only,value
received.

To,
Shri N.N.Dutt
Model Town, R.S.Saxena
Amritsar.
HUNDI OF ALWAL STATE
– Front – Back side
 Features
• A bill of exchange must be in writing.
• It must be dated.
• It must contain an order to pay a certain
sum of money.
• The order must be unconditional.
• The money must be payable to a deinite
person or to his order or to the bearer.
• It must be for a specified amount and
specified period.
• The bill must be accepted by the party on
whom the order is made.
WHAT ARE THE ESSENTIAL
FEATURES OF THIS
DOCUMENT?
THE MONEY MUST BE
ACCEPTED BY THE PARTY ON
WHOM THE ORDER IS MADE.
THE MONEY MUST BE
PAYABLE TO A DEFINITE
PERSON OR TO HIS ORDER
IT MUST CONTAIN AN ORDER
TO PAY AND THE ORDER
MUST BE UNCONDITIONAL
THE BILL OF EXCHANGE IS IN
WRITING AND IS DATED.
IT MUST BE FOR A
SPECIFIED AMOUNT OR FOR
A SPECIFIED PERIOD
R.S.Saxena has ordered N.N.Dutt
to pay Rs.10000 to Gopal Chand.
R.S.Saxena is the drawer,
N.N.Dutt is the drawee,
Gopal Chand is the payee.
How many parties are involved
in the bill of exchange?
There are three parties involved.
R.S.SAXENA
N.N.DUTT
GOPAL CHAND
 Drawer is the person which
makes the order.
Drawee is the person which
accepts the order.
Payee is the person to whom the
amount has to be paid.
THANK YOU