Page 6 - LESSON NOTE
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. To Sales A/c To Creditor’s A/c
Receiving/Accepting the bill Bills Receivable A/c Dr Creditor’s A/c Dr.
To Debtor’s A/c To Bills Payable A/c
Collection of the bill Cash/Bank A/c Dr. Bills Payable A/c Dr.
To Bills Receivable A/c To Cash/Bank A/c
2. When the bill is endorsed by the drawer in favour of his creditor
Transaction Books of Creditor/Drawer Books of Debtor/ Acceptor
Sale/Purchase of goods Debtor’s A/c Dr. Purchases A/c Dr
. To Sales A/c To Creditor’s A/c
Receiving/Accepting the bill Bills Receivable A/c Dr Creditor’s A/c Dr.
To Debtor’s A/c To Bills Payable A/c
Endorsing the bill Creditor’s A/c Dr. No entry
To Bills Receivable A/c
Maturity of the bill No entry Bills Payable A/c Dr.
To Cash/Bank A/c
3. When the drawer gets the bill discounted from the bank
Transaction Books of Creditor/Drawer Books of Debtor/ Acceptor
Sale/Purchase of goods Debtor’s A/c Dr. Purchases A/c Dr
. To Sales A/c To Creditor’s A/c
Receiving/Accepting the bill Bills Receivable A/c Dr Creditor’s A/c Dr.
To Debtor’s A/c To Bills Payable A/c
