Question

What is meant by Retiring of bill under Rebate? Explain with the help of an 2 example.

Answer 1

Answer:

Ex 1) Paying off the bill before it's maturity date

Ex 2)Rebate is a discount allowed by the drawer to the drawee if drawee makes the payment before the maturity date.

Answer 2

Explanation:

retiring a bill under rebate means paying off the bill before its maturity date. rebate is a discount allowed by the drawer to the drawee if drawee makes the payment before the maturity date

Make journal entries in the books of drawer and drawee when a bill of exchange is retired before it maturity.