No journal entry is passed in the books of drawee, if the bill is sent to bank for collection by drawer .

True

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False

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Q. A Bill receivable for ₹ 10,000, which had been discounted for ₹ 9,700, is dishonoured and the Bank paid ₹ 20 as noting charges.
Pass entries in the books of drawer and drawee.

Q. What Journal entry will be passed in the books of drawer (X) and drawee (Y) at the time of dishonour of bill in the following cases:
(i) If bill of ₹ 50,000 was discounted from bank and noting charges paid by the bank was ₹ 600.
(ii) If B/R of ₹ 50,000 was endorsed in favour of Z. Noting charges paid by Z ₹ 600.
(iii) If B/R is returned with drawer and noting charges were ₹ 600.

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

Sharma owes Gupta Rs.420000. On 1st january , 2004.Sharma accepted a bill for 3 months for Rs. 400000 in full settlement.On the same date Gupta discounted the bill from his bank at 6% p.a. Before due date Sharma became bankrupt and Gupta recieved first and final dividend of 20 paise in a ruppee.

Give journal entries in the books of the drawer and the drawee. Also prepare drawee"s account in the books of drawer and drawer"s account in the books of drawee.

The drawer opens a temporary account in his books when the bill is sent to the bank for collection. The name of the account is ______

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