Accountancy for class 11

This class is for class 11 and specially for those students who are facing problem in Bills of Exchange. I am going to discuss the various treatments of Bills of Exchange. I will also discuss how to make journal entries in the four cases. Students are requested to carry a pen and paper. 

What will they learn:

Meaning of Bills of Exchange.

Accounting treatment of bills of exchnge in all the four cases.

(i) Bill is retained till the date of maturity: When a seller (drawer) sells the goods and got a bill in return, he keeps the same till due date.

(ii) Bill is discounted from the bank: When drawer can not wait till maturity and gets the bill discounted with his bank.

(iii) Endorsement of bill: When the drawer passes the bill to his creditor.

(iv) Bill is sent for collection: When the the drawer sends the bill to his bank for collection.