CBSE XI COMPILED BY SUDHIR SINHA

ACCOUNTS

ACCOUNTING ENTRIES AT A GLANCE

Transactions In the books of the drawer In the books of the

Acceptor

Where the B/E is Where the B/E is discounted Where is B/E is Where the B/E for
retained endorsed collection
1 Sale of Goods on Debtor’s A/c …Dr. Debtor’s A/c …Dr. Debtor’s A/c …Dr. Debtor’s A/c …Dr. Purchases A/c …Dr.
credit To Sales To Sales A/c To Sales A/c To Sales A/c To Creditor’s A/c
2 Drawing of B/E No Entry
3 Acceptance of a B/E B/R A/c .Dr. B/R A/c Dr. B/R A/c Dr. B/R A/c Dr. Drawer’s A/c .Dr.
by the Debtor To Drawee A/c To Drawee A/c To Drawee A/c To Drawee A/c To B/P A/c

4 Treatment of Bills No Entry Bank A/c ….Dr. Endorsee’s A/c Dr. Bill sent for No Entry
Discounting Charges A/c Dr. To B/R A/c Collection A/c Dr.
To B/R A/c To B/R A/c
5 Honour of a Bill of Cash/Bank A/c Dr. No Entry No Entry Bank A/c …Dr. B/P A/c ….Dr.
Exchange on Due To B/R A/c To Bills sent To Cash/Bank A/c
Date for Collection A/c
6 Dishonour of B/E on Drawee A/c … Drawee A/c …Dr. Drawee A/c …Dr. Drawee A/c …Dr. B/P A/c ….Dr.
Due Date Dr. To Bank A/c To Endorsee’s A/c To Bills Sent To Drawer’s A/c
a) If Noting Charges To B/R A/c for Collection A/c
a are not incurred
b) If Noting Charges
a are incurred Drawee A/c Dr. Drawee A/c …Dr. Drawee A/c …Dr. Drawee A/c …Dr. B/P A/c …Dr.
Note: (By B.R. +N.C.) (By B.R. +N.C.) (By B.R. +N.C.) (By B.R. +N.C.) N. C. A/c ….Dr.
B.R. Bills Receivable To B/R A/c To Bank A/c To Endorsee’s A/c To Bills Sent for Collection To Drawer’s A/c
N.C. Noting Charges By (B.R.) (By B.R. + N.C.) (By B.R. + N.C.) A/c
To Cash A/c (By B.R.)
(By N.C.) To Bank A/c (By N.C.)

7 Retirement of a Bills Cash A/c or Dr. No Entry No Entry No Entry B/P A/c …Dr.
of Exchange Bank A/c Dr. To Cash/Bank A/c
Rebate A/c Dr. To Rebate A/c
To B/R A/c

KV SEONI MALWA
DISTT HOSHANGABAD
CBSE XI COMPILED BY SUDHIR SINHA
ACCOUNTS

8 Renewal of a B/E
(a) Cancellation of Drawee A/c Dr. Drawee A/c …Dr. Drawee A/c Dr. Drawee A/c …Dr. B/P A/c …Dr.
old B/E To B/R A/c To Bank A/c To Endorsee’s A/c To Bills Sent To Drawer’s A/c
For Collection A/c.
(b) Payment by the Cash A/c Dr. Cash A/c …Dr. Cash A/c …Dr. Cash A/c …Dr. Drawee A/c …Dr.
Drawee To Drawee A/c To Drawee A/c To Drawee A/c To Drawee A/c To Cash
(c) Interest Charged
Drawee A/c Dr. Drawee A/c …Dr. Drawee A/c Dr. Drawee A/c …Dr. Interest A/c …Dr.
to Drawee
To Interest A/c To Interest A/c To Interest A/c To Interest A/c To Drawee A/c
(d) Acceptance of
New B/E B/R A/c. Dr. B/R A/c Dr. B/R A/c Dr. Bills Receivable A/c Dr. Drawer’s A/C .Dr.
To Drawee A/c To Drawee A/c To Drawee A/c To Drawee A/c To B/ P A/C
9 Treatment of New Bill ….. Bank A/c ….Dr. Endorsee’s A/c …Dr. Bill sent No Entry
Discounting Charges A/c Dr. To B/R A/c For Collection A/c Dr.
To B/R A/c To B/R A/c
10 Insolvency of the
Drawee Drawee A/c Dr. Drawee A/c …Dr. Drawee A/c…Dr. Drawee A/c …Dr. B/P A/c …Dr.
(a) Dishonour of a To B/R A/c To Bank A/c To Endorsee’s A/c To Bills Sent for To Drawer’s A/c
B/E Collection A/c
(b) Receipt of Cash A/c Dr. Cash A/c ….Dr. Cash A/c ….Dr. Cash A/c ….Dr. Drawee A/c …Dr.
Amount from the Bad Debts A/c Dr. Bad Debts A/c Dr. Bad Debts A/c Dr. Bad Debts A/c Dr. To Cash A/c
Acceptor To Drawee A/c To Drawee A/c To Drawee A/c To Drawee A/c To Deficiency A/c
Or
P&L A/c
Note:
 The person who draws (prepares) the Bill is called a Drawer.
 The Person who is supposed to pay the bill is called Drawee.
 Encashment of the bill with the bank before its date is called discounting.
 Payment of the bill before due date is called retirement of the bill.
 Payment of the bill on the due date is called honour of the bill.
 On insolvency of the drawee, the bill gets dishonoured.

KV SEONI MALWA
DISTT HOSHANGABAD