Question

25. When a Bill of Exchange is endorsed by the drawer in favour of third party, what entry is passed by the drawee of the bill of exchange​

Answer 1

Answer:
Explanation:
Journal entries are recorded only when there is any fluctuations of assets and liabilities or gains and losses
So,in this case a bill of exchange is a liability for drawee and a asset for drawer and the bill is kept with the drawer until it lapses(becomes matured) and if it is endorsed to a 3rd party the drawer books of accounts will be effected and there is no effect in drawee's books of accounts and as a result there will be no entry in the books of drawee