Question

Explain the Discounting a bill with journal entries:

Answer 1

Answer:

The drawer may discount the bill with the bank before the due date. Thus, at the time of discounting the bank deposits the net amount after charging such amount of discount in the account of the holder of the bill. ... The discount is an expense for the holder of the bill.

Answer 2

The drawer may discount the bill with the bank before the due date. Thus, at the time of discounting the bank deposits the net amount after charging such amount ofdiscount in the account of the holder of thebill. ... The discount is an expense for the holder of the bill.