Bill Payable

A bill of exchange from drawee point of view is called bill payable.

A bill payable could be a document that shows the amount owed for goods or services received on credit. samples of a bill payable include a monthly account, electricity bill, a bill for repairs or maintenance, the bill for merchandise purchased by a retailer on credit, etc. The supplier of the products or services is cited as the supplier or vender. Hence, the bill due  is also called an unpaid vender invoice.

Bill Receivable

A bill of exchange from drawer point of view is called bill receivable.

Accounts receivable are a legally enforceable claim for payment to a business by its customer/ purchasers for goods provided and/or services rendered in execution of the customer’s order. These are usually within the variety of invoices raised by the business associate with delivered to the client for payment at intervals an in agreement time-frame. assets are shown within the record as quality. it's one in every of a series of accounting transactions dealing with the charge of a client for merchandise and services that the client has ordered. These could also be distinguished from notes due , that are debts created through formal legal instruments referred to as dedication notes.

Advantages and Disadvantages of Grace Days

Grace periods will give some advantages. as an example, people that routinely are on time for his or her obligations, however due to occasional unforeseen circumstances are late on a rare occasion, will avoid a penalty for being late within the grace period and maintain their reputation for timeliness.

However, habitual procrastinators could come to look at the grace period as the actual point, and if, attributable to unforeseen circumstances, they're often late beyond that, they may complain about the applied penalty.

Grace Days

An extra three days which are given to drawee after due date for payment are called grace days.

A grace period may be a time past the point for an obligation during which a late penalty that may are obligatory is waived. Grace periods, which may range from a number of minutes to variety of days or longer, looking on the context, will apply in various situations, together with arrival at a job, paying a bill, for meeting a government or legal requirement, or in several other situations.

Advantages and Disadvantages

Grace periods will give some advantages. as an example, people that routinely are on time for his or her obligations, however due to occasional unforeseen circumstances are late on a rare occasion, will avoid a penalty for being late within the grace period and maintain their reputation for timeliness.

However, habitual procrastinators could come to look at the grace period as the actual point, and if, attributable to unforeseen circumstances, they're often late beyond that, they may complain about the applied penalty.

Maturity of Bill of Exchange

When payment is made by drawee and payee received the payment on due date is called maturity of bill.

Due Date of Bill of Exchange

A specific date in future for payment of the bill is called due date of bill.

Acceptance of Bill of Exchange

A process of signing on the bill by drawee with the word “accepted” is called acceptance of Bill.

 A bill of exchange for the amount of a purchase drawn by the seller on the purchaser, bearing the purchaser\'s signature and specifying time and place of payment.