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Bill of exchange of 4000 discounted with the bank was dishonour. what will be its effect on revaluation account and balance sheet?
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Bill of exchange of 4000 discounted with the bank was dishonour. what ...
Effect of Dishonored Bill of Exchange on Revaluation Account and Balance Sheet
Revaluation Account
- The dishonor of the bill of exchange will result in a loss for the business.
- This loss needs to be accounted for in the revaluation account.
- The amount of the dishonored bill will be debited in the revaluation account to reflect the loss incurred by the business.
Balance Sheet
- The dishonored bill of exchange represents a liability for the business.
- This liability needs to be reflected on the balance sheet.
- The amount of the dishonored bill will be shown as a liability on the balance sheet under the current liabilities section.
- It will reduce the overall financial position of the business as the amount of the bill will be deducted from the total assets.
In conclusion, the dishonor of a bill of exchange will have a negative impact on the revaluation account as it will result in a loss for the business. This loss needs to be accounted for in the revaluation account. On the balance sheet, the dishonored bill will be shown as a liability under the current liabilities section, reducing the overall financial position of the business.
Revaluation Account
- The dishonor of the bill of exchange will result in a loss for the business.
- This loss needs to be accounted for in the revaluation account.
- The amount of the dishonored bill will be debited in the revaluation account to reflect the loss incurred by the business.
Balance Sheet
- The dishonored bill of exchange represents a liability for the business.
- This liability needs to be reflected on the balance sheet.
- The amount of the dishonored bill will be shown as a liability on the balance sheet under the current liabilities section.
- It will reduce the overall financial position of the business as the amount of the bill will be deducted from the total assets.
In conclusion, the dishonor of a bill of exchange will have a negative impact on the revaluation account as it will result in a loss for the business. This loss needs to be accounted for in the revaluation account. On the balance sheet, the dishonored bill will be shown as a liability under the current liabilities section, reducing the overall financial position of the business.
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Bill of exchange of 4000 discounted with the bank was dishonour. what will be its effect on revaluation account and balance sheet?
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Bill of exchange of 4000 discounted with the bank was dishonour. what will be its effect on revaluation account and balance sheet? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Bill of exchange of 4000 discounted with the bank was dishonour. what will be its effect on revaluation account and balance sheet? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bill of exchange of 4000 discounted with the bank was dishonour. what will be its effect on revaluation account and balance sheet?.
Bill of exchange of 4000 discounted with the bank was dishonour. what will be its effect on revaluation account and balance sheet? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Bill of exchange of 4000 discounted with the bank was dishonour. what will be its effect on revaluation account and balance sheet? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bill of exchange of 4000 discounted with the bank was dishonour. what will be its effect on revaluation account and balance sheet?.
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