OMTEX CLASSES
“THE HOME OF SUCCESS”
JOURNAL ENTRIES IN THE BOOKS OF DRAWER.
1. When the goods are sold.
Debtors A/c ……… Dr.
To Sales A/c
2. When the bill is drawn.
Bills Receivable A/c ……… Dr.
To Drawee’s A/c
3. Different ways of keeping Bill.
a. Kept with Drawer himself.
No entry
b. Discounted with the bank.
Cash/Bank A/c ……… Dr.
Discount A/c ……… Dr.
To Bills Receivable A/c
c. Endorsed
Endorsee’s A/c ……… Dr.
To Bills Receivable A/c
d. Sent to bank for collection.
Bank For collection A/c ……… Dr.
To Bills Receivable A/c
4. When the Bill is Honoured.
a. Kept with Drawer himself.
Cash /Bank A/c ……… Dr.
To Bills Receivable A/c
b. Discounted with the bank.
No Entry
c. Endorsed
No Entry
d. Sent to bank for collection.
Cash / Bank A/c ……… Dr.
To Bank for collection A/C
5. When the Bill is Dishonoured.
a. Kept with Drawer himself.
Drawee’s A/c ……… Dr.
To Bills Receivable A/c
b. Discounted with the bank.
Drawee’s A/c ……… Dr.
To Cash/Bank A/c
c. Endorsed
Drawee’s A/c ……… Dr.
To Endorsee’s A/c
d. Sent to bank for collection.
Drawee’s A/c ……… Dr.
To Bank for collection A/c
6. When the part payment is made
Cash / Bank A/c ……… Dr.
To Drawee’s A/c
7. When the interest is charged.
Drawee’s A/c ………… Dr.
To Interest A/c
8. When the drawee became insolvent.
Cash / Bank A/c ……… Dr.
Bad Debts A/c ………Dr.
To Drawee’s A/c
9. When the Bill is retired.
Cash / Bank A/c ……… Dr.
Rebate’s A/c ………Dr.
To Bills Receivable A/c