Question

10.
Bills of collection are shown in the balance sheet of a bank under
b)
c)
liabilities
assets
both assets and liabilities
contingent liabilities​

Answer 1

Answer:

the answer is both assets and liabilities.

But I am not sure, so I suggest please check it somewhere.

Answer 2

Bills of the collection are shown in the balance sheet of a bank under assets.

It is recorded on the asset side because the bank will get payment in due course, and it is also recorded on the liabilities side since clients will have to account for it.

Bills for collection are financial instruments used to satisfy a payment obligation between buyers and sellers. These invoices are frequently utilized in situations when the buyer and seller have a business relationship. However, the term bills for collection is most commonly used by banks and other financial organizations that collect invoices on behalf of consumers and charge a fee for doing so. Customers basically engage in a contract, he wants to get money against a certain bill and deliver it to the bank to receive payment against it from the bank, and the bank then realizes the money from the party.

As a result, when final accounts are prepared, these bills are shown on both sides of the balance sheet as assets.