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Question
Write True or False
A bill can't be deposited into bank for collection.
Options
True
False
MCQ
True or False
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.
shaalaa.com
Accounting Treatment of Bill - Sending the Bill to the Bank for Collection, Honour Or Dishonour and Insolvency
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