Till the discounted bills receivables is paid by the drawee it remains a________.

clear liability

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contingent liability

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unearned income

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windfall

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Solution

The correct option is B contingent liability
An obligation which is due on a future date that may occur depending on the outcome of an uncertain future date is called contingent liability. If the discounted bills receivables is not paid by the drawee, that is considered as contingent liability.

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Similar questions

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.

Ascertain the appropriate missing figure from the following information :

Bills receivables as on March 31, 2018 Rs. 20,000,
Bills receivables as on March 31, 2017 Rs. 16,000,
Bills collected Rs. 21,000,
Bills receivable of Rs. 1,00,000 discounted with a bank at a discount of Rs. 4,000,
Bills receivable of Rs. 50,000 endorsed in favour of creditors.
Bills receivable (which were retained ) dishonoured Rs. 25,000.

Who pays the noting charges when a bill which has been discounted with the bank is dishonored by the drawee?

Q. Bills receivable discounted but not due till date of final accounts is shown as _________.

When noting charges are paid by the bank at the time of dishonor of bill the Drawee credits :

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Till the discounted bills receivables is paid by the drawee it remains a________.

The correct option is B contingent liabilityAn obligation which is due on a future date that may occur depending on the outcome of an uncertain future date is called contingent liability. If the discounted bills receivables is not paid by the drawee, that is considered as contingent liability.

The correct option is B contingent liability
An obligation which is due on a future date that may occur depending on the outcome of an uncertain future date is called contingent liability. If the discounted bills receivables is not paid by the drawee, that is considered as contingent liability.