Question

When a bill endorsed is dishonoured, ________ a/c is credited by the drawee.

• A. bills payable A/c
• B. drawer
• C. bank
• D. bill dishonored A/c

Answer 1

Answer: (B)

drawer

Any holder may transfer a bill unless its transfer is restricted, i.e. the bill has been negotiated containing words prohibiting its transfer. The bill can be initially endorsed by the drawer by putting his signatures at the back of the bill with the name of the party to whom its is being transferred. The act of signing and transferring the bill is called as endorsement. When a bill endorsed is dishonoured, drawer a/c is credited by the drawee.