__________________ means cancellation of old bill and drawing a new bill.

Dishonour of bill

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Honouring of bill

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Retirement of bill

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Renewal of bill

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is C Renewal of bill
When on or before due date drawee finds himself unable to make the payment of the bill, he may request the drawer to cancel the old bill and accept a new one, this process is called renewal of the bill.

Suggest Corrections

Similar questions

Cancelling an old bill and drawing a new bill is called renewal of a bill. Do you agree?

The cancellation of the old bill maturity in return for a new bill (which includes interest) for an extended period is called ________________.

If A draws the bill on B, B accepts the bill and returned the bill back to A. A endorses the bill in favour of C. In whose books of Accounts the adjustment is required when bill is dishonoured?

On 1st February, 2016, Ravi sold goods to Mohan for Rs. 18,000; Rs. 3,000 were paid by Mohan immediately and for the balance he accepted three months bill drawn upon him by Ravi. On the date of maturity of the bill Mohan requested Ravi to cancel the old bill and draw a new bill upon him for a period of 2 months. He further agreed to pay interest in cash to Ravi @ 12 % per annum. Ravi agreed to Mohan's request and cancelled the old bill and drew a new bill. The new bill was met on maturity by Mohan.
Pass necessary journal entries in the books of Ravi.

Q. A sold goods for ₹ 40,000 to B on Jan. 01, 2017. He drew upon B a bill of exchange for the same amount payable after 1 month. B accepted the bill and sent it back to A. A discounted the bill immediately with his bank @ 9% p.a. On the due date B dishonoured the bill of exchange and the bank paid ₹ 200 as noting charges. B requested A to draw a new bill upon him with interest @ 12% p.a. which he agreed. The new bill was payable after 1 month. One week before the maturity of the second bill B requested A to cancel the second bill. He further requested to accept ₹ 15,000 in cash immediately and draw a third bill upon him including interest of ₹ 1,000. A agreed to B's request. The third bill was payable after one month. B met the third bill on its maturity. Record the necessary journal entries in the books of A and B and also prepare B's account in the books of A and A's account in the books of B.

Join BYJU'S Learning Program

__________________ means cancellation of old bill and drawing a new bill.

The correct option is C Renewal of billWhen on or before due date drawee finds himself unable to make the payment of the bill, he may request the drawer to cancel the old bill and accept a new one, this process is called renewal of the bill.

The correct option is C Renewal of bill
When on or before due date drawee finds himself unable to make the payment of the bill, he may request the drawer to cancel the old bill and accept a new one, this process is called renewal of the bill.