When bill is sent to the bank for collecting the amount receivable on bill it is called ____________.

Retaining the bill

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Discounting the bill

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Endorsing the bill

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Bill sent for collection

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Solution

The correct option is D Bill sent for collection
The bank keeps the bill in its custody till the due date and on the due date, the bank will present the bill to acceptor. After collecting the amount, the bank transfers the amount to the account of its customer (by giving credit to his account).

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Q. P draws a bill for Rs.2,000 on Q and sent it to bank for collection. Q dishonored the bill. In this case, account is debited in drawer's books.

Q. Bank account is debited when a bill is sent to the 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?

Q. In the books of drawer, account is credited when a bill is sent for collection.

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When bill is sent to the bank for collecting the amount receivable on bill it is called ____________.

The correct option is D Bill sent for collection The bank keeps the bill in its custody till the due date and on the due date, the bank will present the bill to acceptor. After collecting the amount, the bank transfers the amount to the account of its customer (by giving credit to his account).

The correct option is D Bill sent for collection
The bank keeps the bill in its custody till the due date and on the due date, the bank will present the bill to acceptor. After collecting the amount, the bank transfers the amount to the account of its customer (by giving credit to his account).