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Endorsement of a bill means
ACancelling the bill (typical) (typical)
BDiscounting it at a bank (typical) (typical)
CRe-drafting the bill (typical) (typical)
DSigning the back of the bill to transfer rights
Answer & Solution
Correct answer: D. Signing the back of the bill to transfer rights
1. Endorsement is the writing of one's name on the back of a negotiable instrument.
2. It transfers the right, title and interest in the bill to another party.
3. Discounting and cancellation are distinct acts.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 7 "Bills of Exchange", §7.3 ¶§7.3_
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