Question

Write a journal entry:
The firm received bills of exchange from debtors of Rs.30,000.

Answer 1

Journal Entry for Bills of Exchange

Before we start with the Journal Entry for Bills of Exchange, let us understand first what a bill of exchange is. A bill of exchange is a negotiable instrument under the Negotiable Instrument Act, 1881. It is an instrument in writing. It contains an unconditional order requiring a certain person to pay a certain sum of money on a stipulated date. There are three parties i.e. Drawer, Drawee, and Payee.

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