Q.On 1st April 2026, Ganesh sold goods to Suresh for Rs 15,000. Ganesh drew a bill for 2 months, which Suresh accepted. On the same day, Ganesh discounted the bill with his bank at 12% p.a. Give journal entries in the books of both Ganesh (drawer) and Suresh (drawee), assuming the bill is honoured on the due date.

After a bill is drawn (Bills Receivable A/c Dr, To Drawee's A/c, in the drawer's books; Drawer's A/c Dr, To Bills Payable A/c, in the drawee's books), the holder has four options. Retain till maturity: on honour, Bank/Cash A/c Dr To Bills Receivable A/c (drawer) and Bills Payable A/c Dr To Bank/Cash A/c (drawee). Discount with a bank: drawer records Bank A/c Dr (net) + Discount A/c Dr (charge), To Bills Receivable A/c (full amount); the drawee's entry on the due date is unaffected — Bills Payable A/c Dr To Bank A/c. Endorse to a creditor: drawer records Creditor's A/c Dr To Bills Receivable A/c (settling their own debt); again no effect on the drawee's entry. Send for collection: drawer records Bills Sent for Collection A/c Dr To Bills Receivable A/c, then on collection, Bank A/c Dr (net) + Bank Charges A/c Dr, To Bills Sent for Collection A/c; the drawee's entry is unaffected. In every one of these four options, the drawee's own entries never change — the drawee simply pays whoever presents the bill on the due date.