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Journal for Holding till Maturity

Entry regardi...

Question

Entry regarding payment of the bill will be passed in the books of the drawer, if the bill is _______

A

Is endorsed

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B

Retained by the drawer

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C

Is discounted

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D

None of these

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Solution

The correct option is B
Retained by the drawer

Payment made by the drawee will be recorded in the books of the drawer only if drawer has retained the bill till the date of maturity. since in other cases drawer isn't the holder of bill hence he won't record any entry.

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