When a bill is sent to the bank with an instruction that the bill be retained till the date of maturity and realise it on the due date. it is called ……….?

Discounting of bill

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Retiring the bill

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Bill sent for collection

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Renewal of the bill

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Solution

The correct option is C
Bill sent for collection

When a bill is sent to the bank with an instruction that the bill be retained till the date of maturity and realised it on the due date, it is called bill sent for collection.

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Similar questions

Q. When a bill is sent to the bank and instructed that the bill be retained till the date of maturity and realise it, it is said that the bill is .

Vimal purchased goods Rs 25,000 from Kamal on Jan 15, 2016 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity the bill was duly presented for payment. Vimal dishonoured the bill. record the necessary journal entries in the books of Kamal and Vimal when.

• The bill was retained by Kamal till the date of its maturity.

• The bill was immediately discounted by Kamal with his bank @ 6% p.a.

• The bill was endorsed by Kamal in favour of his creditor Sharad.

• Five days before its maturity the bill was sent by Kamal to his bank for collection.

Darshan sold goods for Rs. 40,000 to Varun on 8.1.2011 and drew upon him a bill of exchange payable after two months. Varun accepted the bill and returned the same to Darshan. On the due date, the bill was met by Varun.

Record the necessary Journal entries in the books of Darshan and Varun in the following circumstances.

Darshan sold goods for Rs 40,000 to Varun on 8.1.2016 and drew upon him a bill of exchange payable after two months. Varun accepted the bill and returned the same to Darshan. On the due date the bill was met by Varun. Record the necessary Journal entries in the books of Darshan and Varun in the following circumstances.

· When the bill was retained by Darshan till the date of its maturity.

· When Darshan immediately discounted the bill @ 6% p.a. with his bank.

· When the bill was endorsed immediately by Darshan in favour of his creditor Suresh.

· When three days before its maturity, the bill was sent by Darshan to his bank for collection.

P draws a bill for Rs 2,000 on Q who accepts and returns it to P on the same date. P sent the bill to his banker for collection. On the due date the bill is dishonoured by Q. Which account shall be debited in drawer`s books?

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When a bill is sent to the bank with an instruction that the bill be retained till the date of maturity and realise it on the due date. it is called ……….?

The correct option is C Bill sent for collection When a bill is sent to the bank with an instruction that the bill be retained till the date of maturity and realised it on the due date, it is called bill sent for collection.

The correct option is C
Bill sent for collection

When a bill is sent to the bank with an instruction that the bill be retained till the date of maturity and realised it on the due date, it is called bill sent for collection.