The document outlines various journal entries related to bills receivable. It discusses entries for when goods are sold, a bill is drawn, different ways bills can be kept (with the drawer, discounted with a bank, endorsed, sent to bank for collection), when a bill is honored or dishonored (including part payment or interest charged), when a drawee becomes insolvent, and when a bill is retired.
The document outlines various journal entries related to bills receivable. It discusses entries for when goods are sold, a bill is drawn, different ways bills can be kept (with the drawer, discounted with a bank, endorsed, sent to bank for collection), when a bill is honored or dishonored (including part payment or interest charged), when a drawee becomes insolvent, and when a bill is retired.
The document outlines various journal entries related to bills receivable. It discusses entries for when goods are sold, a bill is drawn, different ways bills can be kept (with the drawer, discounted with a bank, endorsed, sent to bank for collection), when a bill is honored or dishonored (including part payment or interest charged), when a drawee becomes insolvent, and when a bill is retired.
Debtors A/c ……… Dr. d. Sent to bank for collection. To Sales A/c Cash / Bank A/c ……… Dr. To Bank for collection A/C
2. When the bill is drawn. 5. When the Bill is Dishonoured.
Bills Receivable A/c ……… Dr. To Drawee’s A/c a. Kept with Drawer himself. Drawee’s A/c ……… Dr. To Bills Receivable A/c 3. Different ways of keeping Bill. b. Discounted with the bank. a. Kept with Drawer himself. Drawee’s A/c ……… Dr. No entry To Cash/Bank A/c
b. Discounted with the bank. c. Endorsed
Cash/Bank A/c ……… Dr. Drawee’s A/c ……… Dr. Discount A/c ……… Dr. To Endorsee’s A/c To Bills Receivable A/c d. Sent to bank for collection. c. Endorsed Drawee’s A/c ……… Dr. Endorsee’s A/c ……… Dr. To Bank for collection A/c To Bills Receivable A/c 6. When the part payment is made d. Sent to bank for collection. Cash / Bank A/c ……… Dr. Bank For collection A/c ……… Dr. To Drawee’s A/c To Bills Receivable A/c 7. When the interest is charged. 4. When the Bill is Honoured. Drawee’s A/c ………… Dr. To Interest A/c a. Kept with Drawer himself. Cash /Bank A/c ……… Dr. 8. When the drawee became insolvent. To Bills Receivable A/c Cash / Bank A/c ……… Dr. Bad Debts A/c ………Dr. To Drawee’s A/c b. Discounted with the bank. No Entry 9. When the Bill is retired. Cash / Bank A/c ……… Dr. c. Endorsed Rebate’s A/c ………Dr. No Entry To Bills Receivable A/c