Get Highest Grades in Accounts with Endorsement of the Bill Homework Help
Are you having troubles with your accountancy assignments? Are you not sure how to deal with endorsements of bills? For students the affair can be a little puzzling at the beginning. There are so many head and you need to credit some and debit the others. There are rules for separate kinds of entries and the whole thing can understandably be quite bind boggling. As such, students need guidance from professionals who can help them with their assignments, while strengthening the foundation of their knowledge.
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More on Endorsement of the bills:
- How endorsement of bill works:
Holder of a bill might endorse the said bill in favor of a creditor, in order to clear his debt. So when the bill becomes payable, it is not the initial holder who receives the money but the creditor in whose favor it has been transferred (endorsed). A bill of exchange can be transferred from one person to another merely by delivery and it requires no other formalities or prior notice. It’s a negotiable instrument.
- The initial holder is known as endorser and the creditor who finally receives it is the endorsee. The whole transaction is known as endorsement.
- No journal entries are to be made for the endorser when the amount becomes payable. In the endorsee’s journal following entries are to be made:
- Cash a/c….. XXXX
- Bills Receivable A/C…. XXXX
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