Drawer is the creditor who draws (creates) a Bill of Exchange. Accounting entries for drawer: When bill is drawn, no entry is made initially as it's only a substitute for debtors account. When bill is discounted with bank: Debit Bank Account, Debit Discount on Bill (expense), Credit Bills Receivable. Discount represents the interest charged by bank for providing funds before maturity. When bill is endorsed to a creditor in settlement of payables: Debit Creditor's Account, Credit Bills Receivable. When bill matures and is paid by drawee: Debit Bank Account, Credit Bills Receivable. When bill is dishonored by drawee: Debit Debtor's Account, Credit Bills Receivable (reverting to debtor status), and note the dishonor on bill. Bills Receivable account shows outstanding bills due from debtors. Discount expense represents cost of obtaining funds early. Contingent liability is created when bill is endorsed to others; drawer remains liable if drawee dishonors. If bill is retired early: Debit Cash, Credit Bills Receivable. When bill is renewed: Create new bill and account for difference in amount if any. Documentation includes keeping copy of bill, noting maturity dates, tracking discounts. Journal entries should clearly show drawer's position and the treatment of discounts and dishonors. Exam tip: Master the journal entries from drawer's perspective; understand the difference between holding and endorsing bills; practice discount calculations.