Meaning of Bill of Exchange: When goods are sold on a credit basis, the businessman does not get cash immediately, but he gets it after a stipulated time. In the meantime, he is supplied with a written acknowledgement of debt, which is known as Bills of Exchange.
Difference between Bill of Exchange and Cheque:
| Bill of Exchange |
Cheque |
| 1. It may be written on both individual or firm. |
1. It is written only on any specific bank. |
| 2. It may be for a fixed term or payable at sight. |
2. It is always payable on demand. |
| 3. Acceptance is a must in case of it. |
3. Acceptance is not just in case of a cheque. |
| 4. It may be payable both in-country as well as outside the country. |
4. Cheque is payable only within the country. |
| 5. It cannot be crossed. |
5. It may be crossed. |
| 6. It is compulsory to stamp it. |
6. It is not necessary to stamp it. |
| 7. Three days of grace are allowed. |
7. No day of grace is allowed. |
| 8. Noting is a must in case of dishonour. |
8. Noting is not just in case of dishonour. |
