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Bill of Exchange
Bill of Exchange
Bill of Exchange
Bill of Exchange
Bill of Exchange
Bill of Exchange
Bill of Exchange
Bill of Exchange
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Bill of Exchange

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  • 1. Transactions Where the B/E is retained Where the B/E is Discounted Where the B/E is Endorsed Where the B/E is Sent to Bank for Collection 1. Sale of Goods on credit Debtor’s A/c Dr. To Sales A/c Debtor’s A/c Dr. To Sales A/c Debtor’s A/c Dr. To Sales A/c Debtor’s A/c Dr. To Sales A/c 2. Drawing of B/E NO ENTRY 3. Acceptance of Bill B/R A/c Dr. To Debtor’s A/c B/R A/c Dr. To Debtor’s A/c B/R A/c Dr. To Debtor’s A/c B/R A/c Dr. To Debtor’s A/c 4. Treatment of Bills No Entry Bank A/c Dr. Dis. Charges A/c Dr To B/R A/c Endorsee’s A/c Dr. To B/R A/c Bills Sent for Collection A/c Dr. To B/R A/c 5. Honour of a Bill Cash/Bank A/c Dr. No Entry To B/R A/c No Entry Bank A/C Dr. To Bills Sent for Collection A/c 6. Dishonour of a Bill Debtors A/c Dr. (By B.R. + Noting Charges) To B/R A/c To Cash A/c Debtors A/c Dr. (By B.R. + N.C.) To Endorsee’s A/c Debtors A/c Dr. (By B.R. + N.C.) To Bills Sent for Collection A/c To Bank A/c Debtors A/c Dr. (By B.R. + N.C.) To Bank A/c
  • 2. Transactions Where the B/E is retained Where the B/E is Discounted Where the B/E is Endorsed Where the B/E is Sent to Bank for Collection 7. Renewal of Bill of Exchange a) Cancellation of old B/E Debtor’ A/c To B/R A/c Dr. Debtor’ A/c To Bank A/c Dr. b) Part Payment by the Drawee Cash A/c To B/R A/c Dr. Dr. c) Interest Charged On Drawee Debtor’s A/c Dr. To Interest A/c Debtor’s A/c Dr. To Interest A/c Debtor’s A/c Dr. To Interest A/c Debtor’s A/c Dr. To Interest A/c d) Acceptance of new B/E B/R A/c Dr. To Debtor’s A/c B/R A/c Dr. To Debtor’s A/c B/R A/c Dr. To Debtor’s A/c B/R A/c Dr. To Debtor’s A/c Cash A/c To B/R A/c Debtor’ A/c Dr. Debtor’ A/c Dr. To Endorsee’s A/c To Bills Sent for Collection A/C Cash A/c Dr. Cash A/c Dr. To B/R A/c To B/R A/c
  • 3. Transactions Accounting Treatment 1. Sale of Goods on Credit Purchases A/c Dr. To Creditor’s A/c 2. Drawing of B/E No Entry 3. Acceptance of B/E Drawer’s A/c To B/P A/c 4. Treatment of Bills No Entry 5. Honour of a Bill B/P A/c Dr. To Cash/ Bank A/c 6. Dishonour of a B/E Bills Payable A/c Dr. Noting Charges A/c Dr. To Drawer’s A/c 7. Renewal of a B/E a) Cancellation of old B/E b) Part Payment by the Drawee c) Interest Charged On Drawee d) Acceptance of new B/E Dr. B/P A/c Dr. To Drawer’s A/c Drawer’s A/c Dr. To Cash A/c Interest A/c Dr. To Drawer’s A/c Drawer’s A/c Dr. To Bills Payable A/c

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