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A Bill of Exchange must be in writing and
ASigned by the drawer
BOral acceptance is enough
CSigned by the drawee only
DNotarised compulsorily
Answer & Solution
Correct answer: A. Signed by the drawer
1. Section 5 of the Negotiable Instruments Act 1881 requires a bill to be in writing and SIGNED BY THE DRAWER.
2. Acceptance by drawee converts it into a binding instrument.
3. Notarisation is needed only for noting on dishonour.
4. Hence (B) is required for validity.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 7 "Bills of Exchange", §7.1 ¶§7.1_
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