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Bills of Exchange — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsBook Keeping & AccountancyBills of Exchange2 Marks
Question
A bill of exchange needs acceptance.
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Answer

This statement is True.
A bill of exchange is drawn by the creditor on the debtor. It is signed by drawer as well as by drawee. The drawee has to give his assent to the terms and conditions of the bill by putting his signature on it. A bill without acceptance is called a draft. It becomes a valid document only when the drawee accepts it.

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