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What is accounting treatment of bills of exchange?

Well, we know that every business organisationcommences numerous billexchanges regularly. These bills which are accepted is being recorded in a receivable journal. Whereas the bills that are drawn are registered in the bills payable journal.

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Definition of treatment of bills of exchange in accountancy:

Bills of exchange are the promissory notes that have to be treated and recorded as well under a common account which is bills of exchange. Our accounting treatment of bills of exchange assignment help is always ready to help you wherever you get hiccups when going through a task.

The parties involved in the bill of exchange:

  • Drawer
  • Drawee
  • Endorser
  • Endorsee

Important points about bills of exchange:

  • Options for every drawer or receiver-
  1. These bills can be held until the date of maturity unless it becomes payable.
  2. If the bill holder has an emergency for money only then the bill can be discontinued or paid in advance provided maintaining some interest amount.
  3. A bill can be recommended, and the bill holder can pass it on to his creditors who has to clear his sum unpaid.
  4. The bill can also be referred for assortment.
  • Options for every acceptor-
  1. The amount might be paid on thebill of presentation.
  2. If the bill is refused, then it is dishonour of abill of exchange.
  3. The bill can also be renewed.
  4. The bill can also retire.

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