Bank account is debited when a bill is sent to the bank for collection.

True

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False

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Solution

The correct option is B False
The name of the account is "bank for collection account". The bill is transferred to this account and the following journal entry is passed in the journal of drawer:
Bank for collection A/C.........Dr. XXX
Bill receivable A/C...................XXX

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Bank account is debited when a bill is sent to the bank for collection.

The correct option is B FalseThe name of the account is "bank for collection account". The bill is transferred to this account and the following journal entry is passed in the journal of drawer:Bank for collection A/C.........Dr. XXX Bill receivable A/C...................XXX

The correct option is B False
The name of the account is "bank for collection account". The bill is transferred to this account and the following journal entry is passed in the journal of drawer:
Bank for collection A/C.........Dr. XXX
Bill receivable A/C...................XXX