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Yogita Ingle 5 years ago
“A Bill of Exchange is an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money only to, or the order of, a certain person or to the bearer of the instrument.” Section 5 of the Negotiable Instrument Act, 1881
Features of a Bill Exchange are:
1. A bill of exchange must be in writing
2. It must contain an order (and note a request) to make payment.
3. The order of payment must be unconditional.
4. The amount of bill of exchange must be certain.
5. The date of payment should be certain.
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Gaurav Seth 5 years, 2 months ago
Accounting standards are the rules, regulations, directives etc that are issued by accounting and governing bodies of the world. The intention is to make sure all companies and organizations follow the same rules for accounting and have the same format for their financial statements.
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Yogita Ingle 5 years, 3 months ago
A trade discount is one that is allowed by the wholesaler to the retailer, calculated on the list price of the product, whereas cash discount is allowed to stimulate instant payment of the goods purchased. The main difference between trade discount and cash discount is that ledger account is opened for a cash discount, but not for a trade discount.
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Yogita Ingle 4 years, 10 months ago
Book keeping is stated as the recording of day-to-day business transactions in the books of accounts. It involves identification of transactions of financial nature, recording them in the books of accounts and classifying them into the ledger accounts.
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