Page 138 - ISCDEBK-XI

Bill of Exchange 17.3

...Dr. ...Dr. ...Dr. ...Dr. ...Dr.
In the Books of the Drawee (Acceptor) Purchases A/c Creditor’s A/c Drawer’s A/c Bills Payable A/c No Entry Bills Payable A/c Cash/Bank A/c Bills Payable A/c Drawer’s A/c Bills Payable A/c Noting Charges A/c ...Dr. Drawer’s A/c

...Dr. To ...Dr. To ...Dr. ...Dr. To ...Dr. To ...Dr. To

When the B/E is Sent to Bank for Collection Debtor’s A/c Sales A/c To Bills Receivable A/c Acceptor’s A/c To (Debtor’s A/c) Bills Sent for Collection A/c Bills Receivable A/c To Bank A/c Bills Sent for To Collection A/c Acceptor’s A/c Bills Sent for To Collection A/c Acceptor’s A/c (By Amount of B/R + N.C) Bills Sent for To Collection A/c Cash/Bank A/c To

ACCOUNTING ENTRIES FOR BILLS OF EXCHANGE (B/E) AT A GLANCE

...Dr. ...Dr. ...Dr. ...Dr. ...Dr.
When the B/E is Endorsed Debtor’s A/c Sales A/c Bills Receivable A/c Acceptor’s A/c (Debtor’s A/c) Endorsee’s A/c Bills Receivable A/c Acceptor’s A/c Endorsee’s A/c Acceptor’s A/c (By Amount of B/R + N.C) Endorsee’s A/c

In the Books of the Drawer ...Dr. To No Entry ...Dr. To ...Dr. To No Entry ...Dr. To ...Dr. To

When the B/E is Discounted Debtor’s A/c Sales A/c Bills Receivable A/c Acceptor’s A/c (Debtor’s A/c) Bank A/c Discounting Charges A/c ...Dr. Bills Receivable A/c No Entry Acceptor’s A/c Bank A/c Acceptor’s A/c (By Amount of B/R + N.C) Bank A/c

...Dr. To ...Dr. To To ...Dr. ...Dr. To ...Dr. To
When the B/E is Retained Debtor’s A/c Sales A/c To Bills Receivable A/c Acceptor’s A/c To (Debtor’s A/c) No Entry Cash/Bank A/c Bills Receivable A/c To Acceptor’s A/c Bills Receivable A/c To Acceptor’s A/c (By Amount of B/R + N.C) Bills Receivable A/c To Cash A/c To

Transactions Sale of Goods on credit Drawing of Bill of Exchange Acceptance of Bill of Exchange by the Debtor Treatment of Bills Bill of Exchange is met on Due Date. Dishonour of a Bill of Exchange on Due Date If Noting Charges (N.C) are not Incurred. If Noting Charges (N.C) are Incurred.

1. 2. 3. 4. 5. 6. (a) (b)