Journal for Bill Sent for Collection

Q.

Explain briefly the purpose and advantages of maintaining a Bills Receivable Book?

Q.

Is suspense account a real account?

Q. In the books of drawer, account is credited when a bill is sent for collection.

1. bills payable
2. bills receivable
3. bank
4. drawee's

Q.

When a bill is sent for collection, which account is debited in the books of drawer?

1. Bills payable account

2. Discount account

3. Bills receivable account

4. Bills sent for collection account

Q.

State the reasons when the cash book balance will be higher than the pass book balance.

Q.

What Is The Purpose Of Contra Entry

Q.

On 1st October, 2016, Y sells goods to Z for Rs. 24, 000. On that date, Z accepted a bill drawn upon him by Y at 2 months for Rs. 24, 000. Y decides to retain the bill till due date and sends the bill to the banker for collection. In due course, Y receives the information from the bank that the bill has been duly met. Pass journal entries in the books of Y and Z.

Q.

The drawer opens a temporary account in his books when the bill is sent to the bank for collection. The name of the account is ______

1. Owner`s Funds Account

2. Bills sent for collection account

3. Bills Receivable account

4. Drawee account

Q.

X sells goods for Rs 2000 to Y and draws a bill for 3 months for the amount. Y accepts it & returns it to X. X sent the bill to bank for collection. Which account shall be credited in such case?

1. Owner`s Funds Account

2. Drawee account

3. Bills sent for collection account

4. Bills Receivable account

Q. Mr. X owes R s 100000 to Mr. Y which has to be re-paid after 6 months. Mr. X died of a road accident 2 months after taking the loan. Mr. Y approached Mr. x?s family for repayment of his money. Mr. X?s family refused to repay as they were not aware of his loan taken by Mr. X .Do you think the family is right in doing so and what remedy is available to Mr. X?

Q.

Mr. R (drawer) sent his bill for collection, bills sent for collection a/c will be debited in the books of R.

1. True
2. False

Q. When the bill sent for collection is honored, in the books of drawee, bills payable account will be:

1. Debited
2. Credited

Q. No journal entry is passed in the books of drawee, if the bill is sent to bank for collection by drawer .

1. True
2. False