The hundies are written in Indian languages and

The hundies are written in Indian languages and have a large variety (refer box1). Box Hundies and its Types There are a variety of hundies used in our country. Let us discuss some of the most common ones. Shahjog Hundi : This is drawn by one merchant on another, asking the latter to pay the amount to a Shah. Shah is a respectable and responsible person, a man of worth and known in the bazaar. A shah-jog hundi passes from one hand to another till it reaches a shah, who, after reasonable enquiries, presents it to the drawee for acceptance of the payment. Darshani Hundi : This is hundi payable at sight. It must be presented for payment within a reasonable time after its receipt by the holder. It is similar to a demand bill. L EARNING O BJECTIVES After studying this chapter, you will be able to : state the meaning of bill of exchange and a promissory note; distinguish between a bill of exchange and a promissory note; state the advantages of bill of exchange; explain the meaning of different terms involved in the bill transaction, record bill of exchange transactions in journal; record transactions relating to dishonour, retirement and renewal of bill; describe the uses of bill receivable and bill payable book; state the meaning and use of accommodation bill.