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A person on w...

Question

A person on whom the bills of exchange is drawn is called as ______.

A

Drawer

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B

Drawee

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C

Payee

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D

Purchaser

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Solution

The correct option is B Drawee
After credit purchases the Buyer has the obligation for Repayment of his debts towards seller. When a bill is drawn by the seller for a guaranteed payment it indicates the liability of the buyer to pay the bill. Hence, the buyer becomes Drawee when bill is drawn in his name.

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