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 Fundamentals of Accounting - Bill of Exchange (CMA Foundation) About Bill of Exchange The Negotiable Instruments Act 1881 governs the provisions for bills of exchange. According to Section 5 of this act, the bill of exchange is defined as. A bill of exchange means a binding agreement by one party to pay a fixed amount of money to another party as on a specified date or on-demand. In other words, it is a written negotiable instrument containing an unconditional order to pay a specified sum of money to a certain person or to the bearer of the instrument, as directed in the instrument by the maker. The bill of exchange is either payable on demand or after a specified period.   Meaning of Bill of Exchange A bill of exchange is a document that is drawn by one person and directs another person to pay another person a specific sum of money. If the individual who is supposed to pay the sum accepts the bill of exchange, it is of practical use.   Features of the bill of exchange It must be in w

 What are Bills of Exchange? | CMA Foundation When we thought of one of the subjects of CMA Foundation Fundamentals of Accounting , then the bill of exchange seems an important topic to understand. So here in this article we sprinkle on the: All these subtopics will help you in understanding the concept of CMA Foundation Bill of Change of Fundamentals of Accounting. Bill of exchange Meaning Bill of exchange definition Bill of exchange example Features of the bill of exchange Parties of the bill of exchange A bill of exchange is a legally enforceable agreement between two parties to pay a specific sum of money to the other party on a specific date or upon demand. In other terms, it is a written negotiable document that contains an unconditional order from the creator to pay a set sum of money to a specific person or to the bearer of the instrument, as directed in the instrument. The bill of exchange might be paid immediately or after a set length of time.   The bill of exchange is issu