Bill of exchange animation example.

Meeting and Bill of Exchange Transaction

The discussion revolves around a meeting between Reddy and Rao on January 1, 2016, where goods were sold for 10,000 rupees. A bill of exchange was drawn by Rao upon Reddy for the remaining payment.

Meeting Details

• Reddy met Rao in his office on January 1, 2016.

• Goods were sold to Reddy for 10,000 rupees.

• Half of the payment was made immediately.

• A bill of exchange was drawn by Rao for the remaining half.

Presentation of Bill and Payment

This section explains the roles in a bill of exchange transaction and how Rao presented the bill to Reddy for payment.

Roles in Bill of Exchange

• Rao is the creditor, drawer, and payee in this transaction.

• The drawer creates the bill of exchange and pays the recipient.

• Normally, the drawer and payee are the same person.