"Darshini Hundi" is similar to :

Question

Accepted Answer

The correct option is 3:

The "Darshini Hundi" is a specific type of indigenous negotiable instrument that was historically and traditionally used in the Indian subcontinent. The term *Darshini* literally means "at sight," indicating that this Hundi is payable immediately upon its sight or presentation to the drawee. This core feature makes the Darshini Hundi conceptually similar to a **Demand Bill** or a sight bill of exchange in modern financial parlance. A Demand Bill is payable as soon as it is presented to the person liable to pay, without any period of grace or maturity date specified for acceptance. Both the Darshini Hundi and the Demand Bill function as instruments for immediate payment and remittance in trade.

The incorrect option is 1:

A **Voucher** is an internal accounting document that acts as documentary evidence and authorization for a financial transaction. It is typically prepared by a company's accounting department to justify an entry in the books, such as an approved payment to a supplier, and is used for internal control and audit purposes. Conversely, a Hundi is a traditional credit and remittance instrument that operates externally between merchants, much like a bill of exchange, making it a transferable financial claim rather than a mere proof of internal authorization.

The incorrect option is 2:

A **Ledger** is the principal book of accounts in a firm's accounting system, designed for the systematic classification and summary of all transactions from the journal. It contains various accounts (e.g., Cash, Sales, Debtors) to determine balances and prepare final financial statements. A Darshini Hundi, however, is a financial document representing an order or a promise to pay, serving as a medium of credit or payment transfer. The ledger is a record-keeping book, while the Hundi is a commercial instrument of exchange.

The incorrect option is 4:

**Insurance** is a contract of indemnity where one party (the insurer) agrees to pay the other party (the insured) a sum of money upon the occurrence of a specified uncertain event, transferring the risk of financial loss from the insured to the insurer. The fundamental purpose of an insurance contract is risk management and protection. A Darshini Hundi, as an instrument of credit or remittance, facilitates trade by providing a means for transferring funds or delaying payment. Their distinct purposes—risk transfer versus payment transfer—demonstrate why they are not similar concepts.