promisesor under all the four alternatives. It makes no difference whether the

promisesor under all the four alternatives. It makes no difference whether the bill is retained discounted, endorsed or pledged. On accepting the bill Creditor’s A/c To Bills Payable A/c On Maturity of the bill Bills Payable A/c Box . When the drawer retains the bill with him till the date of its maturity and gets the same collected directly Transaction Books of Creditor/Drawer Books of Debtor/ Acceptor Sale/Purchase of goods Debtor’s A/c Dr. Purchases A/c To Sales A/c To Creditor’s A/c Receiving/Accepting the bill Bills Receivable A/c Dr. Creditor’s A/c To Debtor’s A/c To Bills Payable A/c Collection of the bill Cash/Bank A/c Bills Payable A/c Dr. To Bills Receivable A/c To Cash/Bank A/c . When the bill is retained by the drawer with him and sent to bank for collection a few days before maturity Transaction Books of Creditor/Drawer Books of Debtor/ Acceptor Sale/Purchase of goods Debtor’s A/c Purchases A/c To Sales A/c To Creditor’s A/c Receiving /Accepting the bill Bills Receivable A/c Dr. Creditor’s A/c Dr. To Debtor’s A/c To Bills Payable A/c Sending the bill for collection Bills sent for collection A/c No entry To Bill Receivable A/c On Receiving from the bank Bills Payable A/c advice that the bill has been To Bill Sent for collected Collection A/c . When the drawer gets the bill discounted from the bank Transaction Books of Creditor/Drawer Books of Debtor/ Acceptor Sale/Purchase of goods Debtor’s A/c Purchases A/c To Sales A/c To Creditor’s A/c Receiving /Accepting the bill Bills Receivable A/c Dr. Creditor’s A/c To Debtor’s A/c To Bills payable A/c Discounting the bill No entry Discount A/c On maturity of the bill No entry Bills payable A/c . When the bill is endorsed by the drawer in favour of his creditor Transaction Books of Creditor/Drawer Books of Debtor/ Acceptor Sale/Purchase of goods Debtor’s A/c Purchase A/c To Sales A/c To Creditor’s A/c Receiving /Accepting the bill Bills Receivable A/c Dr. Creditor’s A/c To Debtor’s A/c To Bills payable A/c Endorsing the bill Creditor’s A/c No entry On maturity of the bill No entry Bills payable A/c