Question

Manu purchased goods on credit from Kumar for Rs. 40,0 on 1 April 2009. On the same date Kumar draws a bill for 2 months and got it accepted by Manu. What are the options available to Kumar in dealing with the bill?

Answer 1

The following options are available to deal with the bill. 

1. He can retain the bill till the date of maturity. 

2. He can get the bill discounted through the bank. 

3. He can endorse the bill in favour of his creditor. 

4. He may sent the bill for collection to the bank.