Bills Of Exchange

Question 1

Sale of goods

Answer 1

Br ac Dr
To sales ac

Purchase ac Dr
To BP

Question 2

Acceptance of bill

Answer 2

Br ac Dr
To Y ac

X ac Dr
To BP

Question 3

Maturity of bill

Answer 3

Bank ac Dr
To Br

BP ac Dr
To bank ac

Question 4

Discounting of bill with bank

Answer 4

Bank ac
Discounting charges
To Br

Question 5

When discounting bill matures

Answer 5

BP
To bank ac

Question 6

When Bill endorsee

Answer 6

Z ac
To BR

Br ac Dr
To X

Question 7

When endorsed bill matures

Answer 7

Y -
BP ac Dr
Bank ac

Z -
Bank ac Dr
To BR

Question 8

Bills sent for collection

Answer 8

X - Bill’s sent for collection ac Dr
To bank ac

Question 9

Bills sent for collection matures

Answer 9

X
Bank ac Dr
To bills sent for collection

BP
To bank ac

Question 10

Returning bill under rebate

Answer 10

X
Bank ac Dr
Rebate ac Dr
To Br

Y
BP ac
To bank ac
To rebate on bill

Question 11

When Bill dishonored on the the date on maturity

Answer 11

X
Y ac Dr
To Br
To cash

Y
BP
Noting charges
To X

Question 12

When interest is paid
In cash
With BR

Answer 12

In cash
X
Cash
To interest
Y
Interest
To cash

Inclusive of bill
X
Yac Dr
To interest

Y
Interest
To x

Question 13

Renewal of bill

Answer 13

X
Br
To Y

Y
X
To BP

Question 14

Bill discounted dishonored

Answer 14

X
Y
To bank

Y
BP
Noting charges
To X

Question 15

Endorsed and dishonored

Answer 15

X
Y ac
To Z

Y
BP
Noting charges
To X

Z
X
To Br
To cash

Question 16

Bills sent for collection dishonored

Answer 16

X
Y
To bills sent for collection

Y
BP
Noting charges
To X

Question 17

When acceptor becomes insolvent

Answer 17

X
Bank
Bad debts
To y

Y
X
To bank ac
To deficiency