When a bill drawn by A on B and retained till the date of maturity is dishonored on the due date, it is debited in the books of A to ____________.

Bills receivable account

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B's account

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Bills payable account

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Cash account

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Solution

The correct option is C B's account
A bill is said to have been dishonoured when the drawee fails to make the payment on the date of maturity. The journal entry for this type of transaction is as follows:
B's A/c Dr.
To Bills receivable A/c

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When a bill drawn by A on B and retained till the date of maturity is dishonored on the due date, it is debited in the books of A to ____________.

The correct option is C B's accountA bill is said to have been dishonoured when the drawee fails to make the payment on the date of maturity. The journal entry for this type of transaction is as follows:B's A/c Dr. To Bills receivable A/c

The correct option is C B's account
A bill is said to have been dishonoured when the drawee fails to make the payment on the date of maturity. The journal entry for this type of transaction is as follows:
B's A/c Dr.
To Bills receivable A/c