promissory note is instrument in writing (not being
a bank note and a currency note) containing an
unconditional undertaking signed by the maker to pay
a certain sum of money only to or the the order of a
certain person or to the bearer of the instrument."
definition means that when a person gives a promise
in writing to pay a certain sum of money
unconditionally to another person of according to
creditor's instructions, this document is called a
promissory note. It is generally used for loan
Specimen/Format of Promissory Note:
accounting treatment for promissory notes is almost
the same as that of bills of exchange.