Question

bills were discounted to the extent of rs.10000 of which bills of rs.4000 are likely to be dishonered hence the liability to rank in respect of this Bill will be​

Answer 1

Explanation:

Dishonour of a bill is considered when either the payee is not in a position to pay his or her bill or if the paid amount is not acceptable due to any reason. Now if there is an overall discount of 10,000 and to that discount, further 4000 is not being paid, then the liability of payment will reduce by an amount of 14,000. Since total bill amount is not given so we can only tell about the amount which will reduce from the total bill

Answer 2

The liability to rank in respect of the bill will be Rs. 4000.

• The drawee is often dishonoured by the bills receivable discounted with the bank. The balance of the bill must be charged to the bank in such a situation.
• If the transaction is held with the same bank, the bank will debit the customer's account instead of accepting payment.
• The journal entry for the same is

Drawee A/c Dr

To Bank A/c Cr

• Thus, if the bills are discounted to 10,000 and the bills to be dishonoured are of 4,000 thus the liability will fall on the bill of 4000.