Question

When the bills sent to bank for collection are dishonored, which account is credited?

• A. Bank
• B. Drawer
• C. Drawees
• D. Bank account for collection of Bills

Answer 1

Answer:

D. Bank account for collection of Bills

When a bill is dishonoured, the bank returns the bill, so the bank account used for collection is credited, and the debtor’s account is debited.