Question

Q.5.
On 1" April, 2019 Navin drew after sight bill of * 15,000 for 60 days on Jeevan. Jeevan accepted the bill on
4th
April, 2019.
On 6th of April, Navin purchased goods worth 720,000 from Akash on credit. On the same date Navin
endorsed Jeevan's bill in favour of Akash and paid the balance by cheque. On the due date government
declared emergency holiday and Jeevan honoured his acceptance presented by Akash as per the Negotiable
Instruments Act.
You are required to pass journal entries in the books of Navin, Jeevan and Akash.
2.6. On 01.09.2019 lyer drew a hill of 30 000 on Patil at 3 month
The bill​

Answer 1

Answer:

Journal Entry for Bills of Exchange

Journal Entry for Bills of ExchangeThe drawer is the person who draws or makes the bill and sends it to the drawee or the payer for the acceptance. Once accepted, the bill becomes Bills Receivable for the drawer and Bills Payable for the drawee or payee.The drawer may endorse the bill to another person who becomes the holder of the bill. On the due date, the holder presents the bill to the drawee for payment.

The drawer may endorse the bill to another person who becomes the holder of the bill. On the due date, the holder presents the bill to the drawee for payment.The payee is the person who eventually pays for the bill. Drawee will be the payee as well most of the time but sometimes a third party will pay the bill on behalf of the drawee then the third party will become the payee.

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Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable Instruments

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory Notes

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of Exchange

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of ExchangeTreatment of Bills of Exchange

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of ExchangeTreatment of Bills of ExchangeThe drawer can treat the bill in the following ways:

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of ExchangeTreatment of Bills of ExchangeThe drawer can treat the bill in the following ways:Retain it till maturity

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of ExchangeTreatment of Bills of ExchangeThe drawer can treat the bill in the following ways:Retain it till maturityDiscount it with the bank

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of ExchangeTreatment of Bills of ExchangeThe drawer can treat the bill in the following ways:Retain it till maturityDiscount it with the bankEndorse it in favor of another person

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of ExchangeTreatment of Bills of ExchangeThe drawer can treat the bill in the following ways:Retain it till maturityDiscount it with the bankEndorse it in favor of another personOn the due date, there can be two situations:

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of ExchangeTreatment of Bills of ExchangeThe drawer can treat the bill in the following ways:Retain it till maturityDiscount it with the bankEndorse it in favor of another personOn the due date, there can be two situations:The bill is honored.

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of ExchangeTreatment of Bills of ExchangeThe drawer can treat the bill in the following ways:Retain it till maturityDiscount it with the bankEndorse it in favor of another personOn the due date, there can be two situations:The bill is honored.The bill is dishonored.

Browse more Topics under Bills Of Exchange And Promissory NotesIntroduction to Negotiable InstrumentsPromissory NotesRetirement of Bills of ExchangeTreatment of Bills of ExchangeThe drawer can treat the bill in the following ways:Retain it till maturityDiscount it with the bankEndorse it in favor of another personOn the due date, there can be two situations:The bill is honored.The bill is dishonored.Journal Entry for Bills of Exchange.

hope it helps you....