Journal Entries in the Books of Drawee

1. When the goods are purchased.
Purchase A/c ……… Dr.
To Creditor’s A/c
[the person who sells the goods he is known as creditor]
2. When the bill is drawn.
Drawer’s A/c ……… Dr.
To Bills payable’s A/c
3. Different ways of keeping Bill.
a. Kept with Drawer himself.
No entry
b. Discounted with the bank.
No entry


c. Endorsed
No entry

d. Sent to bank for collection.
No entry
4. When the Bill is Dishonoured.
a. Kept with Drawer himself.
Bills payable a/c ……… Dr.
To Drawer’s A/c
b. Discounted with the bank.
Bills payable a/c ……… Dr.
To Drawer’s A/c
 c. Endorsed
Bills payable a/c ……… Dr.
To Drawer’s A/c
d. Sent to bank for collection.
Bills payable a/c ……… Dr.
To Drawer’s A/c
5. When the Bill is Honoured.
a. Kept with Drawer himself.
Bills payable’s A/c ……… Dr.
To Cash/ Bank A/c
b. Discounted with the bank.
Bills payable’s A/c ……… Dr.
To Cash/ Bank A/c
c. Endorsed
Bills payable’s A/c ……… Dr.
To Cash/ Bank A/c
d. Sent to bank for collection.
Bills payable’s A/c ……… Dr.
To Cash/ Bank A/c
6. When the part payment is made
Drawer’s A/c ……… Dr.
To Cash/ Bank A/c
7. When the interest is charged.
Interest A/c ……… Dr.
To Drawer’s A/c
8. When the Bill is retired.
Bills payable’s A/c ……… Dr.
To Cash / Bank A/c
To Discount A/c
9. When the drawee become insolvent.
Drawer’s A/c ……… Dr.
To Cash/ Bank A/c
To Deficiency A/c
10. When the noting charge is charged.
Noting charges a/c ……… Dr.
To Drawer’s A/c

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