CA Foundation · Accounting · Bills of Exchange and Promissory Notes
In a bill of exchange, the person who gives the unconditional order to pay a fixed sum of money is called the:
The drawer is the person who makes the bill and gives the unconditional order to pay a fixed sum. The drawee is the person directed to pay, and the payee is the person who receives payment. So the drawer is the correct answer.
- ADrawerCorrect
- BDrawee
- CPayee
- DEndorsee
Explanation
The drawer is the maker of the bill who writes the unconditional order directing the drawee to pay. The drawee is the person who is directed to pay and who becomes the acceptor after accepting. The payee is the person to whom payment is to be made.
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