MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Current Liabilities

Which of the ...

Question

Which of the following is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date?

A

Account payable

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

B

Bills of exchange

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

C

Promissory Note

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

D

Prepaid insurance policy

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

Open in App

Solution

The correct option is D Promissory Note
Promissory Note is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date

Suggest Corrections

thumbs-up

0

Similar questions

Q. Which of the following refers to an instrument in writing containing an unconditional order, signed by maker directing a certain person to pay on demand or at fixed or determinable future time a certain sum of money only to or to the order of, a certain person or to the bearer of the instrument?

Q. According to Negotiable Act,

1881

, which of the following refer to an instrument in writing (not being a bank note or a currency note) containing unconditional undertaking, signed by the maker to pay or demand or at a fixed or determinable future time or the bearer of the instrument?

Q. Mr. Amit signs on instrument in the following terms.
(i) "I promise to pay B or order Rs. 500"
(ii) "I promise to pay B Rs. 500, first deducting all other sums which shall be due to him"
(iii) "I promise to pay B Rs. 500 on D's death, provided D leaves one enough to pay that sum"
Which of the following are promissory notes?

Q. When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as ________.

Q. Identify the product these features indicate.
A: Agreement between a borrower and lender
B: Promise of future payments
C: Paid in money, goods, or services

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Non-Current and Current Liabilities

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Current Liabilities

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon