Question

In the book of drawee, the entey of bill sent for collection is not pass,why?

Answer 1

Dear student When bill of exchange is sent to the bank for collection, drawee or acceptor does not make any journal entry in his books. The drawee only makes a journal entry when he meets the bill on due date because the drawee is liable to pay the bill on the due date. He has no concern with whatever the drawer does to the bill before the due date. Regards