Notes :
1. Same Entry is passed in the books of Drawee at the time of dishonour of a bill/
2. In the books of Drawer
(At the time of Dishonour of Bill)
Drawee Dr. (In all Cases)
To Bills Receivable A/c (Case-I)
To Cash A/c (Noting Charges)
OR
To Bank A/c (Case-II)
(Including noting Charges)
OR
To Endorsee A/c (Case-III)
(Including noting charges)
OR
To Bills Sent for Collection A/c (Case-IV)
To Bank A/c (Noting Charges)
Illustration 6
A sold good to B on April 1, 2011 for ϕ 20,000 on credit and drew upon him a bill for the same amount payble after 3 months. B accepted the bill and returned into to A. On the due date bill was dishonoured.
Pass Journal entries in the books of A and B if
Case I : Bill is retained by A till the date of maturity.,
Case II : Bill is discounted by A from his bank on 4th April, 2011 @ 6% per annum.
Case III : Bill is endorsed in favour of C on April, 4th, 2011.
Case IV : Bill is sent to bank for collection on July 1, 2011.
Solution :
In the books of A (Drawer)
CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari )
Email Id : [email protected]
