Ram had borrowed certain sum of Rs.1,20,000/- from Shyam for which he had executed some documents. One of the documents prepared by Ram stated that "Received Rs.1,20,000/- from Mr. Shyam as a loan to be paid back fully by December 31, 2022, with an interest of 18% p.a." Answer the following questions: 1. Whether this was a Promissory Note? 2. If yes, why? If no, why? 3. What are the essentials of a Promissory Note?

Ram had borrowed certain sum of Rs.1,20,000/- from Shyam for which he had executed some documents. One of the documents prepared by Ram stated that "Received Rs.1,20,000/- from Mr. Shyam as a loan to be paid back fully by December 31, 2022, with an interest of 18% p.a." Answer the following questions: 1. Whether this was a Promissory Note? 2. If yes, why? If no, why? 3. What are the essentials of a Promissory Note?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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