A draws bill upon B. B accepts the bill payable after two months. A discounted the bill with Bank. Who will be the payee in this scenario?

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Bank

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None of these

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Solution

The correct option is C
Bank

Bank will be the payee in this scenario

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Q. Anita purchased goods for ₹ 23,000 from Kavita on October 15, 2009 and accepted a bill of exchange drawn upon her by Kavita payable after two months. On the date of maturity the bill was duly presented for payment. Anita dishonoured the bill. The payee noted with ₹ 95 as noting charges.
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(Endorsement, discounted with bank, dishonoured) On 1st July, 2016, Ashu draws on Vishu who owed him Rs. 25,000, two bills, one for Rs 15,000 for three months and another for Rs. 10,000 for two months. Vishu accepts these bills.

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Give journal entries to record these transactions in the books of Ashu and Vishu.

Q. A sold goods for ₹ 40,000 to B on Jan. 01, 2017. He drew upon B a bill of exchange for the same amount payable after 1 month. B accepted the bill and sent it back to A. A discounted the bill immediately with his bank @ 9% p.a. On the due date B dishonoured the bill of exchange and the bank paid ₹ 200 as noting charges. B requested A to draw a new bill upon him with interest @ 12% p.a. which he agreed. The new bill was payable after 1 month. One week before the maturity of the second bill B requested A to cancel the second bill. He further requested to accept ₹ 15,000 in cash immediately and draw a third bill upon him including interest of ₹ 1,000. A agreed to B's request. The third bill was payable after one month. B met the third bill on its maturity. Record the necessary journal entries in the books of A and B and also prepare B's account in the books of A and A's account in the books of B.

Q. On 1st January, 2017, A draws a bill on B for ₹ 1,000 payable after 3 months. Immediately after its acceptance, A sends the bill to his bank for collection. On the due date, the bill was dishonoured. Record the transactions in the Journals of A and B.

Q. Amar sells goods to Bhola for ₹ 10,000 plus CGST and SGST @ 9% each. He receives the GST amount in cash and draws upon Bhola a bill for the balance amount payable 3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his bank at a discount of ₹ 150 inclusive of all charges. Bhola fails to meet this bill on maturity. Amar pays off his bank and his expenses amounting to ₹ 100. Bhola gives a fresh bill of 2 months' date to Amar for ₹ 10,250, which he meets at maturity. Show necessary Journal entries in Amar's books.

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A draws bill upon B. B accepts the bill payable after two months. A discounted the bill with Bank. Who will be the payee in this scenario?

The correct option is C Bank Bank will be the payee in this scenario

The correct option is C
Bank

Bank will be the payee in this scenario