Accounting treatment of Bills of Exchange Assignment Help

Posted on October 15, 2016

Best accounting treatment of bills of exchange assignment help

 

Looking for Best accounting treatment of bills of exchange assignment help, you are at right place. Accounting treatment of bills is required by the students in order to create their journal faultlessly. There are a lot of ways to treat a bills of exchange and it creates confusion among the students to remember how to treat the bills. There are lots of step to follow in the accounting treatment of bills of exchange, students should always have to be careful because a single fault by them can change the whole answer of the questions. It needs concentration and accurate statistics to get the right figure

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What is accounting treatment of bills of exchange

For accounting purposes bills of exchange and promissory notes are treated. And both are treated and recorded under the common account” Bills of Exchange”

There can be four parties involved in the bills of exchange

  • Drawer
  • Drawer
  • Endorser
  • Endorsee

Treatment of bills by a drawer are below

  • Drawer stays with the bill till the time of maturity and takes in the payment against it.
  • In need of money drawer can discount the bill with a bank before its maturity.
  • Against a debt, drawer can transfer the bill to his creditor by endorsing it.
  • Drawer can send the bill to the bank for collection of amount against it.

 

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