Accounting Practice: Commercial Draft And Its Settlement Characteristics

A commercial bill is a note issued by a payee or a depositor (or a receiving applicant), who is accepted by the acceptor and paid to the payee or the endorser on due date.

Acceptance means that the drawee is willing to pay the obligation to pay the amount of the coupon. Generally speaking, it recognizes that the amount of the draft will be paid unconditionally when it is due.

According to the acceptor, commercial draft can be divided into two types: commercial acceptance and bank acceptance.

A commercial acceptance bill refers to a bill drawn or accepted by the payee, or issued and accepted by the drawee, which is issued by the payee. The bank acceptance bill refers to the draft issued by the payee or the accepting applicant and applied by the applicant to the Bank of the bank for examination and acceptance.

Commercial draft is compared with other bank settlement methods.

It has the following characteristics:

First, compared with bank draft, commercial bill of exchange has a relatively narrow scope of application. Only commercial pactions between commercial enterprises and institutions can be issued only if they are legally traded on the basis of purchase and sale contracts.

In addition to commodity trading, other forms of settlement, such as labor remuneration, debt repayment, capital lending, etc., can not be settled by commercial draft.

Second, with

Compared with other settlement methods, commercial bill of exchange is also relatively less used.

The commercial bill of exchange uses the legal person who opens accounts in the bank.

The payee, the payer, the endorser and the endorser must have two conditions at the same time: one is to open an account in a bank, the other is to have a legal person qualification.

Individual businesses, rural contractors, individuals, legal persons, and other units or individuals that do not have legal personality, and have

But commercial banks are not allowed to open accounts in banks.

Third, commercial draft can be issued by payer or by payee, but it must be accepted.

Only commercial bills accepted will be legally valid, and the acceptor is liable for unconditional payment.

When a commercial bill is due, because the acceptor has no payment or any other lawful cause, the debtor can not get the payment, he may exercise the recourse right forward in accordance with the order of the endorsement of the bill of exchange, and recover the face value according to law; all the parties involved in the bill shall be jointly and severally liable.

The time limit for acceptance of a commercial bill is agreed between the two parties, usually 3 months to 6 months, and the longest period should not exceed 9 months.

Fourth, the unexpired commercial draft can go to the bank for discount, so that the settlement and bank financing will be combined, which is conducive to timely replenish the working capital and maintain the normal operation of production and operation.

Fifth, commercial drafts can be used in the same city and in different places, and there is no limit to the starting point of settlement.

Sixth, commercial bills will be registered and endorsed.

After the commercial bill expires, the bank will handle the pfer settlement, and the bank will not pay cash.

The time limit for presentation of commercial bills is 10 days from the date of maturity of the bill.