On 1.1.2011, Pawan sold goods to Harish on credit for Rs. 25,000. Pawan drew a bill for the same amount for two months and sent it to Harish for his acceptance on the same day. On 5.1.2011 Pawan got the acceptance of Harish. In this case, before 5.1.2011 what is the status of the bill?

Bearer Cheque

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Promissory Note

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It is known as mere draft.

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Bill of Exchange

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Solution

The correct option is C
It is known as mere draft.

It is just a draft till it is accepted by the drawee

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Similar questions

Q. On January

1

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10, 000

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On 1.1.2011, Pawan sold goods to Harish on credit for Rs. 25,000. Pawan drew a bill for the same amount for two months and sent it to Harish for his acceptance on the same day. On 5.1.2011 Pawan got the acceptance of Harish. In this case, before 5.1.2011 what is the status of the bill?

The correct option is C It is known as mere draft. It is just a draft till it is accepted by the drawee

The correct option is C
It is known as mere draft.

It is just a draft till it is accepted by the drawee