Question

When noting charges of Rs 100 is paid by the endorsee, what will be the impact in the books of drawer?

• A. Drawee account debit Rs 100
• B. Endorsee account credit 100
• C. Bank account credit Rs 100
• D. Both A & B

Answer 1

The correct option is D

Both A & B

The entry would be

Drawee A/c Dr	100
To Endorsee A/c	100