CMA Foundation · Fundamentals of Financial and Cost Accounting · Bills of Exchange
In a bill of exchange drawn by Rohan Traders on Meera Stores for ₹40,000 payable to Rohan Traders, who is the 'drawee'?
The drawee is Meera Stores. A drawee is the person on whom the bill is drawn and who is ordered to pay the amount. Rohan Traders, which writes the bill, is the drawer and, being the payee here, receives the money.
- ARohan Traders
- BMeera StoresCorrect
- CThe bank that discounts the bill
- DThe person who endorses the bill
Explanation
The drawee is the person directed to pay the amount and who accepts the bill. Here Meera Stores is the debtor on whom the bill is drawn. Rohan Traders is the drawer, and also the payee as the bill is payable to itself.
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