When a bill drawn by A on B, is endorsed to C, later which was dishonoured on the due date, it is credited in the books of A to ____________.

Bank account

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Bills receivable account

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Bank for collection of bills account

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C's account

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Solution

The correct option is C C's account
A bill is said to have been dishonored when the drawee fails to make the payment on the date of maturity. The journal entry for the transaction "when a bill drawn by A on B endorsed to C is dishonored on the due date" is as follows:
B's A/c............Dr.
To C's A/c

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