Question

What journal entry will be passed in the books of drawer at the time of dishonor of

Bills of Exchange in the following cases​

Answer 1

Answer:

Drawee’s A/c Dr.

To Bills Receivable A/c

(Being dishonor of bill)

Answer 2

Answer:

• Bill is drawn and accepted:

Bills receviable A/C                  Dr.

            To Drawee's A/C

i.) Retaining the bill till maturity:

(no entry)

ii.) Discharge of bill

Cash/Bank A/C                  Dr.

          To Bills Receivable A/C

iii.) Dishonor of bill

Drawee's A/C             Dr.

        To Bills Receivable A/C

• Discounting Of Bills with Bank:

i.) Bank A/C       Dr.

Discount A/c               Dr.

       To Bills Receivable A/c

ii.)  discharge of the bill

No entry

iii.) Dishonor of bill

Drawee's A/c           Dr.

       To Bank A/c

• When a bill is endrosed and got dishonured:

Drawee's A/c        Dr.

To Creditor's/Endrosee's A/c

• When a bill sends for collection and gets dishonored:

Drawee's A/c               Dr.

          To Bill sent for collection A/c

          To Bank A/c

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