Archive | Accounting

There are some difference between Discounting and Retiring as given below:

If a bill is not accepted or bill if accepted is not paid on the due date, it is said to have been dishonoured.

Holder means any person entitled in his own name to the possession of the negotiable instruments and to recover or receive the amount due thereon from the parties thereto.

A cheque differs from a bill of exchange in the following respects:

A cheque is the means by which a person who has funds in the hands of a bank withdraws the same or some part of it.

Such bills are drawn to help the other party or for mutual benefit. They are not received in lieu of value received by the other party.

There are two kinds of bills:

The following are the points of distinction between a promissory note and a bill of exchange:

The following are the advantages of a bill of exchange:

A bill of exchange has the following features:

A bill of exchange as, “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a sum of money only to or to the order of a certain person or to the bearer of the instrument.”

A cheque may be a bearer cheque or an order cheque. A bearer cheque is made payable to the bearer i.e. it is payable to the person who presents it to the bank for encashment.

The advantages of opening an account with the bank are:

In order to open a current account, one has to fill in a prescribed application form. The bank usually insists on such person of business enterprise being introduced by an existing customer of the bank or other reputed businessman.

A bank may be defined as a institution which deals in money. Banks draw surplus money from the people who are not using it at the time and lend to those who are in a position to use it for productive purposes.

Special journals are the journals in which special classes of transactions are recorded such as; purchases book records purchases of goods on credit; sales book records sales of goods on…