Multiple choice

If a bill is renewed,

  1. it is dishonoured on the due date

  2. it is paid on the due date

  3. the old bill is cancelled and a fresh bill is drawn

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If drawee feels that he would be not able to pay the bill on due date, he requests the drawer to cancel the old bill and accept a fresh one. This is known as a renewal of bill.

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