Question

second bill was discounted for 1590 on 15th jan.and third was sent to bank for collection on 4th Feb. all the bills were met on maturity expect the second bill which was dishonoured and noting charges paid rupees 24. Satish charge rupees 30 for interest and drew upon Harish a fourth bill for two months for 1654 the fourth bill was duly met on maturity .give general entries in the books of Satish.​

Answer 1

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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

• Browse more Topics under Bills Of Exchange And Promissory Notes

• Introduction to Negotiable Instruments

• Promissory Notes

• Retirement of Bills of Exchange

• Treatment of Bills of Exchange

• The drawer can treat the bill in the following ways:

• Retain it till maturity

• Discount it with the bank

• Endorse it in favor of another person

• On the due date, there can be two situations:

• The bill is honored.

• The bill is dishonored.