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Accounting Bills of Exchange

Difference Between Bill of Exchange and Cheque/Check

By Abida Rehman #, #

Difference Between Bill of Exchange and Cheque/Check:

Learning Objectives:

  1. What is the difference between bill of exchange and cheque/check?

Check Bill of Exchange
  • It is drawn on a banker
  • It may be drawn on any party or individual.
  • It has three parties – the drawer, the drawee, and payee.
  • There are three parties – the drawer, the drawee, and the payee.
  • It is seldom drawn in sets
  • Foreign bills are drawn in sets
  • It does not require acceptance by the drawee.
  • It must be accepted by the drawee before he can be made liable to pay the bill.
  • Days of grace are not allowed to a banker
  • Three days of grace are always allowed to the drawee.
  • No stamp duty is payable on checks
  • Stamp duty has to be paid on bill of exchange.
  • It is usually drawn on the printed f
  • It may be drawn in any paper and need not necessarily be printed.

You may also be interested in other articles from “accounting for bills of exchange page” chapter:

  1. Definition and Explanation of Bill of Exchange
  2. Advantages of a Bills of Exchange
  3. How a Bill of Exchange Functions
  4. Promissory Note
  5. Difference between Bill of Exchange and Promissory Note
  6. Difference Between Bill of Exchange and Cheque/Check
  7. Recording Transactions of Bill of Exchange
  8. Drawing, Acceptance, and Payment of Bill of Exchange
  9. Discounting of Bill of Exchange
  10. Bills of Exchange for Collection
  11. Endorsement of a Bill of Exchange
  12. Dishonour of a Bill of Exchange
  13. Renewal of a Bill of Exchange
  14. Retiring of a Bill of Exchange
  15. Accommodation Bill of Exchange
  16. Insolvency of the Acceptor in a Bill of Exchange

By Abida Rehman

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