Multiple choice

Directions: Choose the correct option for the given question.

Which of the following transactions will not be entered in bill receivable account?

  1. Endorsed bill is dishonoured

  2. Discounted bill is dishonoured

  3. Both (1) and (2)

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A bill receivable account records the receipt and maturity of bills. When a discounted bill is dishonored, the bank debits the customer's account, not the bills receivable account, because the bill is already out of the business's possession.

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