Bills receivable endorsed are debited to _______ account.

Debtor's

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Creditor's

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Bills payable

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Bills receivable

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Solution

The correct option is B Creditor's
As a normal practice, a drawer may accept the bill drawn by his creditor but some time instead of accepting a fresh bill, the drawer may endorse his bills receivable. In such case endorsee will be the owner of that bill and he will realize the payment on due date. In this case, this will be debited to creditors account.
For example, Mr. A sells goods worth Rs.5000 to Mr.B on credit. Mr. B accept a bill for the amount. Mr. A endorse the bill in favor of his creditor Mr.C. In such a case, while endorsing the bill to Mr.C, Creditor Mr. C's account will be debited by crediting bills receivables account.

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Similar questions

	(Rs)
Bills accepted	$1, 05, 000$
Discount received	$17, 000$
Purchases returns	$9, 000$
Return inwards	$12, 000$
Cash paid to accounts payable	$50, 000$
Bills receivable endorsed to creditor	$45, 000$
Bills dishonoured	$17, 000$
Bad debts	$14, 000$
Balance of accounts payable (closing)	$85, 000$
Credit purchases	$2, 15, 000$

Find out the credit purchases from the following:

	Rs
Balance of creditors April 01, 2016	45,000
Balance of creditors March 31, 2017	36,000
Cash paid to creditors	1,80,000
Cheque issued to creditors	60,000
Cash purchases	75,000
Discount received from creditors	5,400
Discount allowed	5,000
Bills payable given to creditors	12,750
Return outwards	7,500
Bills payable dishonoured	3,000
Bills receivable endorsed to creditors	4,500
Bills receivable endorsed to creditors dishonoured	1,800
Return inwards	3,700

	(Rs)
Opening balance of debtors	$14, 00, 000$
Opening balance of bills receivable	$7, 00, 000$
Closing balance of bills receivable	$3, 50, 000$
Cheque dishonoured	$27, 000$
Cash received from debtors	$10, 75, 000$
Cheque received and deposited in the bank	$8, 25, 000$
Discount allowed	$37, 500$
Irrecoverable amount	$17, 500$
Returns Inwards	$28, 000$
Bills receivable received from customers	$1, 05, 000$
Bills receivable matured	$2, 80, 000$
Bills discounted	$65, 000$
Bills endorsed to creditors	$70, 000$

Prepare the bills payable account from the following and find out missing figure if any :

	Rs
Bills accepted	1,05,000
Discount received	17,000
Purchases returns	9,000
Return inwards	12,000
Cash paid to accounts payable	50,000
Bills receivable endorsed to creditor	45,000
Bills dishonoured	17,000
Bad debts	14,000
Balance of accounts payable (closing)	85,000
Credit purchases	2,15,000

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