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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:
Important points about bills of exchange:
- Options for every drawer or receiver-
- These bills can be held until the date of maturity unless it becomes payable.
- 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.
- A bill can be recommended, and the bill holder can pass it on to his creditors who has to clear his sum unpaid.
- The bill can also be referred for assortment.
- Options for every acceptor-
- The amount might be paid on thebill of presentation.
- If the bill is refused, then it is dishonour of abill of exchange.
- The bill can also be renewed.
- The bill can also retire.
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