bills receivable

Bills Receivable is as assets and Bills Payable is the Liabilities.

It is used as security where both the parties (Seller & buyer) don't know each other, also discountable from the bank if drawer/seller ready to pay some amount of interest to the bank, also transferable to the creditor.

3 golden rules for BR A/C DR TO DEBTORS A/C

•    debit the receiver , credit the giver

•    debit what comes in , credit what goes out

•    debit all the expenses and losses , credit all the incomes and gains

Question analysis

3 accounts affected

    bank A/c - personal A/c , where bank is giver its credited as per rules
    ashok a/c - personal a/c , hes the receiver of cash therefore hes debited as per rules
    discount received - nominal account - its a income therefore its credited