Page 283 - VIRANSH COACHING CLASSES

In the books of Purva
Journal

Date Particulars L. F. Debit Credit
Amount ` Amount `
2019 Bills Receivable A/c ...........................................Dr. 22,500
Feb. 18 To Pallavi’s A/c 22,500
(Being Bills Receivable received )
a) May 19 Cash / Bank A/c ..................................................Dr. 22,500
To Bills Receivable A/c 22,500
(Being cash received on Bills Receivable)
b) May 19 Pallavi’s A/c ........................................................Dr. 22,500
To Bills Receivable A/c 22,500
(Being Bills Receivable dishonoured)
c) May 19 Pallavi’s A/c ........................................................Dr. 22,675
To Bills Receivable A/c 22,500
To Cash A/c 175
(Being Bills Receivable dishonoured and Noting
Charges paid)
4. Bills sent to Bank for Collection
Holder of the bill can send the bill to bank for collection. In business enterprises a large number
of bills receivable are received regularly and it is difficult to remember to present various bill to
different Drawees on different due dates. In such cases the Drawer sends the bill to his/her bank
who will collect the amount of these bills on due date on behalf of the Drawer. For this service
bank charges certain fees known as Bank Charges. Drawer opens a temporary account for this
purpose known as “Bill sent for collection A/c”. This account closes on the due date of the Bill.

Sells the goods on credit
Seller / Creditor Buyer / Debtor

Draws the bill
Drawer Drawee

Accepts the bill
Holder Acceptor

Presents it

on due date
Pays cash to
Sends the bill to the
the bank
Bank for collection

BANK

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