Write 'True' or 'False' against each statement regarding a bill of exchange:

(i) A bill of exchange must be accepted by the payee.
(ii) A bill of exchange is drawn by the creditor.
(iii) A bill of exchange is drawn for all cash transactions.
(iv) A bill payable on demand is call

Question

Write 'True' or 'False' against each statement regarding a bill of exchange:

(i) A bill of exchange must be accepted by the payee.
(ii) A bill of exchange is drawn by the creditor.
(iii) A bill of exchange is drawn for all cash transactions.
(iv) A bill payable on demand is called a Time bill.
(v) The person to whom payment is to be made in a bill of exchange is called the payee.
(vi) A negotiable instrument does not require the signature of its maker.
(vii) The hundi payable at sight is called Darshani hundi.
(viii) A negotiable instrument is not freely transferable.
(ix) Stamping of a promissory note is not mandatory.
(x) The time of payment of a negotiable instrument need not be certain.

Accepted Answer

> [!TLDR]
> (i) F, (ii) T, (iii) F, (iv) F, (v) T, (vi) F, (vii) T, (viii) F, (ix) F, (x) F.

### Reasoning

| # | Answer | Why |
|:---:|:---:|:---|
| (i) | False | A bill is accepted by the **drawee**, not the payee. |
| (ii) | True | A bill is drawn by the creditor (seller) on the debtor. |
| (iii) | False | A bill is used for **credit**, not cash, transactions. |
| (iv) | False | A bill payable on demand is a **demand bill**; a time bill is payable after a fixed period. |
| (v) | True | The payee is the person to whom payment is to be made. |
| (vi) | False | A negotiable instrument **must** be signed by its maker. |
| (vii) | True | A hundi payable at sight is a Darshani hundi. | …

Q.Write 'True' or 'False' against each statement regarding a bill of exchange:

Concept understanding — Parties to a Bill of Exchange

Reasoning

#	Answer
(i)	False
(ii)	True
(iii)	False
(iv)	False
(v)	True
(vi)	False
(vii)	True
(viii)	False

#	Answer	Why
(i)	False	A bill is accepted by the drawee, not the payee.
(ii)	True	A bill is drawn by the creditor (seller) on the debtor.
(iii)	False	A bill is used for credit, not cash, transactions.
(iv)	False	A bill payable on demand is a demand bill; a time bill is payable after a fixed period.
(v)	True	The payee is the person to whom payment is to be made.
(vi)	False	A negotiable instrument must be signed by its maker.
(vii)	True	A hundi payable at sight is a Darshani hundi.

Q.Write 'True' or 'False' against each statement regarding a bill of exchange:

Reasoning

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