Maharashtra State BoardHSC Commerce 12th Board Exam
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Write True Or False a Bill Can'T Be Deposited into Bank for Collection. - Book Keeping and Accountancy

MCQ
True or False

Write True or False
A bill can't be deposited into bank for collection.

Options

  • True

  • False

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Solution

False
Explanation:
 The drawer of a bill can send the bill to its bank with clear instructions to retain the bill and realise the amount of the bill on its due date. This is termed as bill sent to bank for collection. Also, in case of bills discounted with bank, the bank becomes the payee and is entitled to receive the amount on the due date.

Concept: Accounting Treatment of Bill - Sending the Bill to the Bank for Collection, Honour Or Dishonour and Insolvency
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 9 Bill of Exchange (Trade Bill)
Exercise | Q 18 | Page 316
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