On due when Drawee Fails to make the payment of the bill _____________.

Bill is Honored

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Bill is Dishonored

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Bill is cancelled

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None of the above

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Solution

The correct option is B Bill is Dishonored
Dishonour of a bill of exchange occurs when the drawee fails to settle the payment on the date of maturity. When the bill of exchange is dishonoured, the liability of the acceptor is restored (he/she becomes the debtor again).

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On due when Drawee Fails to make the payment of the bill _____________.

The correct option is B Bill is DishonoredDishonour of a bill of exchange occurs when the drawee fails to settle the payment on the date of maturity. When the bill of exchange is dishonoured, the liability of the acceptor is restored (he/she becomes the debtor again).

The correct option is B Bill is Dishonored
Dishonour of a bill of exchange occurs when the drawee fails to settle the payment on the date of maturity. When the bill of exchange is dishonoured, the liability of the acceptor is restored (he/she becomes the debtor again).