Page 280 - VIRANSH COACHING CLASSES

Note : Noting Charges paid by bank is added to the amount.
In the books of Ajinkya
Journal
Date Particulars L. F. Debit Credit
Amount ` Amount `
2019 Ashwin’s A/c ......................................................Dr. 45,000
July 12 To Bank A/c 15,000
To Bills payable A/c 30,000
(Being paid by cheque and accepted a bill for
balance)

July 12 Bills payable A/c.................................................Dr. 30,000
To Cash/Bank A/c 30,000
(Being our acceptance dishonoured on the due date)
b) Oct. 15 Bills payable A/c.................................................Dr. 30,000
To Ashwin’s A/c 30,000
(Being our acceptance dishonoured)
c) Aug. 4 Bills payable A/c ................................................Dr. 30,000
Noting charges A/c..............................................Dr. 300
To Ashwin’s A/c 30,300
(Being our acceptance dishonoured and Noting
charges payable)
3. Endorsement of Bill of Exchanges :
A further use of exchange is to settle a debt that Drawer or holder owes to their creditors.
Endorsement is words written at the back of the bill of exchange along with signature of
transferor for transferring the title of bill. A bill of exchange being negotiable instrument can be
transferred from one person to another in due course. The holder who transfers the title of the
bill is called endorser and the person in whose favor the bill is transferred is called endorsee.
The process of endorsement may continue till the due date

Sells the goods on credit
Seller / Creditor Buyer / Debtor

Draws the bill
Drawer Drawee

Drawee accepts the bill
Holder Acceptor

and returns it to Drawer
Presents the bill

on due date
Pays the cash to
Endorses the bill

ENDORSEE endorsee

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