Question

In joint ventures discounting charges of bill of exchange is

Answer 1

Explanation:

The other party will debit the party which has received the sale proceeds and credit the Joint Venture Account. Sometimes, a bill of exchange is drawn by one of the parties on the other and is then discounted. ... In such a case, the discount on the bill should be charged to the Joint Venture Account

Answer 2

Answer:

A bill of exchange can be defined as a draft that is accepted and it is given for early payment to any credit institution like a bank. The early payment is less than the face value because there is a reduction in the amount due to the service charges that are taken by the bank. There are also some interest charges which are considered by the bank. When the payment comes into the bank, the entire amount is taken by the bank.