Explanation:
When a bill receivable is endorsed, it means that the holder of the bill has transferred the right of receiving the payment to another person or entity. This transfer is done by endorsing the bill in favor of the transferee.

When the bill receivable is endorsed, it becomes a negotiable instrument, and the transferee becomes the new holder of the bill. The transferee can then present the bill for payment to the debtor mentioned in the bill.

Since the bill receivable is now the property of the transferee, it needs to be accounted for in the books of accounts.

The correct accounting treatment for the endorsement of a bill receivable is to debit the Creditors A/c and credit the Bills Receivable A/c.

Debiting the Creditors A/c:
• When the bill receivable is endorsed, the transferee becomes the new holder of the bill.
• The transferee is now the creditor of the debtor mentioned in the bill.
• Hence, the amount of the bill receivable endorsed is debited to the Creditors A/c.

Crediting the Bills Receivable A/c:
• Since the bill receivable is no longer the property of the holder, it needs to be removed from the Bills Receivable A/c.
• Hence, the amount of the bill receivable endorsed is credited to the Bills Receivable A/c.

Therefore, option 'B' - Creditors A/c is the correct answer.

B/r is our asset so when we endrose a b/r we credit it and it reduces our creditor so we dr. creditor's a/c to reduce them so entry will be
CREDITOR'S A/C dr.
TO B/R. A/C