Multiple choice

When bill discounted with the bank is dishonoured,

  1. acceptor’s account is debited in the books of drawer

  2. bills receivable account is credited in the books of drawer

  3. bank account is debited in the books of drawer

  4. bills payable account is debited in the books of drawer

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A Correct answer
Explanation

Correct Answer: acceptor’s account is debited in the books of drawer