what is the difference between bill of exchange and promissory note.
bill of exchange and promissory note
laxmi (Chartered Accountant (presently teaching)) (30 Points)
30 September 2008
3 Replies
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 01 October 2008
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.
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 01 October 2008
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Bill Of Exchange
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Promissory Note
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There are three parties namely drawer, drawee and payee
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There are only two parties viz maker and payee
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The drawer and payee may be the same person
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Maker cannot be the payee
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There is an unconditional order to drawee to pay according to the drawer’s direction
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Contains an unconditional promise by the maker to pay to the payee or to his order
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Payable after sight must be accepted by the drawee or someone else on his behalf before it can be presented for payment
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Presented for payment without any prior acceptance by the maker
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The liability of the drawer is secondary and conditional
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Liability of a maker of promissory note is primary and absolute.
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Sakyasingh Rath
(student)
(56 Points)
Replied 01 October 2008
Respected Intellectuals,
Would someone please tell me what is "Diluted EPS" ?
Thanking You
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