Question

6.
Demand drafts and Telegraphic transfers are
shown in the Bank accounts under the head
(a) Contingent Liabilities
(b) Bills payable
(c) Loans and Advances
(d) Borrowings in India​

Answer 1

Answer:

under the head bills payable

Answer 2

Demand drafts and Telegraphic transfers are

shown in the Bank accounts under the head

(a) Contingent Liabilities

(b) Bills payable

(c) Loans and Advances

(d) Borrowings in India​

The correct answer is :

(b) Bills payable

Explanation :

• Demand drafts and Telegraphic transfers are shown in the Bank accounts under head Bills payable.
• Both demand draft and telegraphic transfer are kept in the account of the bank in the category of Bills payable.
• Demand draft and telegraphic transfer are covered under demand liability.
• Demand draft or telegraphic transfer are the modes of payment.
• When payment is made by one party to the other, he may make payment by demand draft or telegraphic transfer.
• Demand Draft is not a loan of any kind, nor is it any kind of advance.
• The paying party may make a demand draft or telegraphic transfer by making the payment by cash from his side or by money from his account with the bank.

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