When the drawer receives a bill of exchange duly accepted by the drawee, which entries are made in the drawer’s books: (i) debit Bills Receivable, (ii) debit Drawee’s Account, (iii) credit Drawee’s Account, (iv) credit Sales Account?
Correct answer D. (i) and (iii)
Explanation
The accepted bill is an asset, so Bills Receivable is debited, and the drawee's debt is settled by the bill, so the Drawee's Account is credited.
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