What do we mean by ,"Honoured our acceptance in favour of Lalit by cheque of Rs 1,500" How - Accountancy - Recording of Transactions - II

Question

What do we mean by ,"Honoured our acceptance in favour of Lalit by
cheque of Rs 1,500" How to record the transaction in cash book ?

Neha Chopra · Accepted Answer

Dear Student,

"Honoured our acceptance 
in favour of Lalit by cheque for Rs 1,500" means that a bill of
exchange accepted earlier (that was due for payment) has been paid
off by way of cheque This is the situation of where a payment is
made against the bills payable

In cash book the transaction would be posted as
follows:
Cash book/Bank book would be credited

Cash/Bank
Book

Dr

Cr

Date
Particulars
L F
Amount
(Rs)
Date
Particulars
L F
Amount
(Rs)

By Bills Payables A/c

1,500

Regards,

Cash/Bank Book
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
						By Bills Payables A/c		1,500

What do we mean by ,"Honoured our acceptance in favour of Lalit by cheque of Rs. 1,500". How to record the transaction in cash book ?