. . Commercial Bills A bill of exchange issued by a commercial organization to raise money for short- term needs. These bills are of days, days and days maturity.
The Commercial Bill is an instrument drawn by a seller of goods on a buyer of goods. It possesses the advantages like self-liquidating in nature, recourse to two parties, knowing exact date of transactions, transparency of transactions etc., Features The features of the Commercial Bills are as follows: . Drawer . Acceptor .
Payee . Discounter . Endorser . Assessment .
Maturity . Credit Rating Types of Commericial Bills a. Demand Bills A demand bill is one wherein no specific time of payment is mentioned. So, demand bills are payable immediately when they are presented to the drawee.
b. Clean bills and documentary Bills Bills that are accompanied by documents of title to goods are called documentary bills. Clean bills are drawn without accompanying any document. E.g.
Railway Receipt and Lorry Receipt c. Inland bills and Foreign Bills Bills that are drawn and payable in India on a person who is resident in India are called inland bills. Bills that are drawn outside India and are payable either in India or outside India are called foreign bills. d.
Indigeneous Bills The drawing and acceptance of indigenous bills are governed by native custom or usage of trade. e. Accommodation Bills Accommodation bills are those which do not arise out of genuine trade of transactions.