User talk:Hafizshahid

bill of exchange
BILL OF EXCHANGE It is the unconditional written document that one person write and other accept it. Accepted person pay the amount at fix date.

Parties of bill of exchange                                           BY:HAFIZ SHAHID IRFAN ASLAM 1- Drawer - that write the bill                               XERG_RULESHAHID@YAHOO.COM 2-Drawee - that accept the bill 3-Payee - that receive the amount at due date 4-indoser third party to whom drawer forward the bill

Modes of bill of exchange 1-If drawer kept the bill with himself till due date 2-If drawer endorse the bill to third party 3-If the bill is discounted from bank 4-If the bill is sent to bank for collection Entries

1-When drawer sell goods to drawee and drawee purchase the goods from drawer. Drawer						Drawee Drawee A/C					PURCHASES A/C SALE A/C						Drawer A/C 2- When drawer draw the bill on drawee and drawee accept the bill from drawer. Drawer						Drawee Bill receivable A/C					Drawer	A/C Drawee a/c							bill payable A/C 3- When drawer indorse the bill to third party Drawer						Drawee Third party A/C Bill receivable A/c							no  entry 4- when the bill is discounted from bank Bank a/c 						Drawee Discount a/c				       no  entry Bill receivable A/c 4-when the bill is sent to bank for collection Drawer							Drawee Bank for collection a/c 											Bill                 bill receivable A/c						  no entry

5-when drawer receive amount of bill at fix date Drawer						Drawee Cash A/C						bill payable A/C Bill receivable A/C				 cash	A/C

Dishonor of bill If drawee refuse to pay the amount of bill then bill will be dishonored.

Categories may be:                                               BY:HAFIZ SHAHID IRFAN ASLAM 1-If drawer have the bill and dishonoured

Entry Drawer						Drawee Drawee A/C						bill payable A/C Billreceviable A/C					Drawer A/C

2-if bill is in the possession of third party Entry Drawer						Drawee Drawee A/C						bill payable A/C Third party A/C					Drawer A/C (Same like above) Retirement of bill If drawee pay amount of bill before fix date then bill will be retired If drawer gives some discount to drawee because he pays before due date so that is called rebate. Rebate: It is income for drawee. BY:HAFIZ SHAHID IRFAN ASLAM It is expense for drawer. Entry Cash A/c					Drawee Rebate A/C						Bill payable A/C Bill receivable A/C					cash a/c Rebate A/C

Renewal process of bill of exchange >Dishonor entry for 1st bill >Noting charges >Cash payment                      BY:HAFIZ SHAHID IRFAN ASLAM >Interest                                  XERG_RULESHAHID@YAHOO.COM >New bill

Accommodation bill: >There is no sale and purchase in this bill. >There is no endorsement of bill in it. >In this bill drawer of one bill become the drawee of 2nd bill. >Any party who is using the amount of bill will also bear the discount of bill with this ratio

BY:HAFIZ SHAHID IRFAN ASLAM