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On dishonour of bill discounted with bank, drawer's books debit:
ABills Receivable account
BDiscount expense account
CBank charges account
DDrawee / Maker account
Answer & Solution
Correct answer: D. Drawee / Maker account
1. The drawee/maker becomes liable again on dishonour.
2. Drawer debits Drawee account, credits Bank account.
3. Noting charges (if any) are also added to drawee's account.
_Source: ICAI BoS Foundation Paper 1, Ch 6 "Bills of Exchange", §4 dishonour_
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