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    Question

    Mr. X draws a bill on Mr. Y for ₹1,00,000 payable

    after 3 months. Mr. Y accepts the bill but fails to honour it on maturity. What is this act called in accounting terms?
    A Dishonour of bill Correct Answer Incorrect Answer
    B Discounting of bill Correct Answer Incorrect Answer
    C Endorsement of bill Correct Answer Incorrect Answer
    D Cancellation of bill Correct Answer Incorrect Answer

    Solution

    When an accepted bill is not honoured on the due date, it's known as dishonour of bill, and liability is reinstated.

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