Dear children, in the chapter of Bills of Exchange, the
next topic is coming in front of us, Endorsement of a Bill
We sold a credit to someone, he gave us a cheque, put the
date after 3 months on the cheque
He came to us, received the bills
And we were also in debt of a creditor
We also had to pay him the money after 3 months with the
very same amount
So what did we do, we gave him the cheque, that brother,
you clear this cheque
The money that has come from here, whenever we have to give
it to you, you can directly receive it from here
This is called Endorsement of a Bill
The cheque that has come from the debtor, giving it to the
creditor is called Endorsement of a Bill
Sir, if the cheque from the debtor has come for Rs.
10,000 and we have to pay the creditor Rs.
Then give us Rs.
1000 cash, give us the cheque for Rs.
10,000, what is the problem?
Sir, we can also do this, the cheque from the debtor is for
Rs.
10,000, giving it to the creditor is for Rs.
So giving the cheque for Rs.
10,000 and taking cash from him
Of course, any combination is possible
So when there is an endorsement, when you take the cheque
from one hand and give it to the other
Like Ritik Roshan does in the movie Kaho Na Pyare
He takes the rose from one hand and gives it to the other
What will be the general interest of that?
We are going to see this with you
Come sir, let's see the drawer here, first there will be a
sale
Our most favorite sale will be first
Whose entry will it be?
Debtor Account Debit or Buyer Account Debit to Sale Account
Then Bill will come, Bill Disable Account Debit to Debtor
Bill came, Bill Disable Account Debit, we told the debtor
to go
Your work is done, you go
We got the bill, you can go
Go pigeon, go, go, go
We credited him
Now what will we do?
Now the bill that we have in our hands
We will give it to the creditor
And we will finish the liability of the creditor on our head
Over Over Over Over Bill Bill Bill Creditor Bill Bill Bill
Bill Bill Bill Bill Bill After 3 months, the creditor will
take the cheque to his bank and he will get the money on
time
Bill will be cleared and debtor will not cheat
In this case, we have no entry
Why? We don't have to give or take
Debtor gave, creditor gave
We were already free in the middle
But what will happen
If the debtor's cheque gets dishonored
Which we gave to the creditor and it is not cleared
What will happen?
Creditor will come again and hold our neck
He will say, what cheque did you give?
It was not cleared
He will hold us again
Liability will be on our head again
And we will have to credit the creditor again
Liability to whom we had debited
We will have to credit and revive it again
And in anger
We will also hold the debtor's neck
What cheque did you give?
You gave it to someone, it was not clear
Debtor account, debit to creditor
Account The debtor you let go by taking the bill
You credited
Debtor Debit the debtor and revive it again
Hey brother, I want to take money from you
Come here, the bill could not be cleared
And here the entry is the same
The government is exactly the same
No difference at all
Here the entries are the same
There is no difference
Okay sir
Okay, this was the topic of endorsement of a bill