Accounting for Bills Exchange Account - Accounting for Bills Exchange

The Bills Receivable Book is part of:

If Ram's acceptance which was endorsed by us in favour of Saleem is dishonoured, then the amount will be debited in our books to:

The party which is ordered to pay the amount is known as ...

Rebate is calculated for the period between date of:

A bill given to creditor is called Bill Payable. Why?

What is bill at sight?

Promissory Note requires the acceptance. Comment.

Give one special feature of promissory note.

Define the bill of exchange.

Define Bill of Exchange. What are the features of a Bill of Exchange?

Define a Promissory Note. What are the features of a Promissory Note?

Define a Promissory Note.

Mohan Singh draws a bill on Jagat for ₹ 1,000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties.

Who are the parties to a Promissory Note?

On 1st January, 2019, A sold goods to B for ₹ 5,000 plus IGST @ 18%. A received ₹ 900 by cheque from B and drew on him a bill for the balance amount payable 3 months after date. The bill was duly accepted by B. A retained the bill till due date. On due date, the bill was paid.
Pass Journal entries in the books of A and B. Also, show necessary accounts in the books of both the parties.

Distinguish between Bills of Exchange and Promissory Note on the following basis:

1. Order or Promise and Parties.
2. Acceptance.
3. Payee.
4. Noting.

Amar sells goods to Bhola for ₹ 10,000 and draws upon him a bill for the amount payable 3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his bankers at a discount of ₹ 150 inclusive of all charges. Bhola fails to meet this bill on maturity. Amar pays off his banker and his expenses amounting to ₹ 100. Bhola gives a fresh bill, 2 months' date to Amar for ₹ 10,250, which he met at maturity.
Show the necessary Journal entries in Amar's books.

On 10th March, 2019, A draws on B a bill at 3 months for ₹ 20,000 which B accepts immediately and returns to A. The bill is honoured due date.
​Pass necessary Journal entries in the books of both the parties.

Distinguish between Bills of Exchange and Promissory Note on the basis of:

1. Drawer.
2. Acceptance.
3. Payee.
4. Number of parties.

On 1st January, 2019, A drew a bill on B for ₹ 10,000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On the due date, the bill was dishonoured and C paid ₹ 50 as noting charges.
Record the transactions in the books of A, B and C.

Vinod sold goods to Darbara Singh for ₹ 1,000 on 1st January, 2019. He drew on the latter a bill for the amount payable 3 months after date. He discounted the bill with his bank for ₹ 990 on 4th January, 2019. On maturity, the bill is duly met. Make the Journal entries in the books of Vinod and Darbara Singh.

Explain any three of the following:

1. Retiring of Bills of Exchange.
2. Holder in due course.
3. Bills sent to bank for collection.
4. Noting charges.

Leena sold goods to Meena on 1st March, 2009 for ₹ 68,000 and drew two Bills of Exchange of the equal amount upon Meena payable after three months. Leena immediately discounted the first bill with her bank at 12% p.a. The bill was dishonoured by Meena and Bank paid ₹ 55 as noting charges.
The second bill was retired on 4th May, 2009 under a rebate of 6% p.a. with mutual agreement.
Journalise the above in the books of Leena and Meena.

Calculate the due dates of the bills in the following cases:

Date of Bill		Tenure (Period)
(i)	1st December, 2018	60 Days
(ii)	30th April, 2019	2 Months
(iii)	28th January, 2019	1 Month
(iv)	23rd November, 2018	2 Months
(v)	29th May, 2018	4 Months