Question

20. No Entry is made in the book of Drawee

On endorsing the bil
O On discounting the bill
O Dishonour of the bill
O All of the above​

Answer 1

Answer:

No entry for payment of the bill at maturity is passed in the books of drawer

A. When the bill is retained till maturity

B. When the bill is sent for collection

C. When the bill is enforced or discounted

D. None of these

Answer: Option C

Explanation:

Answer 2

On discounting the bill, no entry is made in the books of the drawee.

Explanation:

• Sometimes the buyer is not able to make immediate payment at the time of the transaction, so the seller draws a bill on the buyer for the payment to be made at a later scheduled date as written on the bill.
• Here' the seller is called the "drawer," and the buyer the "drawee."
• The seller may retain the bill till its maturity date but sometimes he may endorse the bill to a third party in payment of their debt or he may discount the bill with the bank.
• In case of discounting the bill with the bank, no entry is made in the books of drawee.
• Because the drawee just has to make the payment on the maturity date and has no concern with whatever the drawer does with the bill before the maturity date.