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If Acceptance received from Ram is endorsed in favor of Salem and it is dishonored now. then we will debit:
a)Ram
b)Trade receivable 
c)Saleem
d)None
Correct answer is option 'A'. Can you explain this answer?
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If Acceptance received from Ram is endorsed in favor of Salem and it i...
Debiting Ram when Acceptance received from him is endorsed in favor of Salem and it is dishonored is the correct option. Let's understand why.

Endorsement in Favor of Salem
When Ram endorses the Acceptance in favor of Salem, the ownership of the Acceptance is transferred from Ram to Salem. Salem becomes the new holder of the Acceptance and has the right to receive the payment on maturity.

Dishonor of Acceptance
If the Acceptance is dishonored, it means that the drawee (the person who is supposed to make the payment) has refused to make the payment on maturity. This can happen due to various reasons such as insufficient funds, signature mismatch, or any other reason.

Debiting Ram
Since Ram was the original drawer of the Acceptance, he is liable to make the payment. When the Acceptance is dishonored, Salem can demand the payment from Ram. Therefore, Ram's account is debited to show that he has a liability to pay the amount to Salem.

Conclusion
In summary, when Acceptance received from Ram is endorsed in favor of Salem and it is dishonored, Ram's account is debited to show that he is liable to make the payment to Salem.
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If Acceptance received from Ram is endorsed in favor of Salem and it is dishonored now. then we will debit:a)Ramb)Trade receivablec)Saleemd)NoneCorrect answer is option 'A'. Can you explain this answer?
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