Journal Entries in the books of Drawer



1. When the goods are Sold.
Debtor’s A/c……… Dr.
To Sales A/c
[the person who purchases the goods he is known as debtor]
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 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
5. 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
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 Bill is retired.
Cash / Bank A/c ……… Dr.
Rebate’s A/c ……… Dr
To Bill’s Receivable A/c
9. When the drawee become insolvent.
Cash / bank A/c ……… Dr.
Bad debts A/c ……… Dr.
To Drawee’s A/c
10. When the noting charge is charged.
 The amount of noting charges will be added to the dishonoured bill and no separate entry would be passed.

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