Question

when a given cash discount in bills of exchange what was the entry ​

Answer 1

Answer:

No journal entry at the time of discounting of bill in the books of drawee. The entry for discounting a bill in drawer's journal shows increase in drawer's bank balance at present value (face value - discount given), increase in a loss (discount given) and decrease in an asset (bill receivable).

Answer 2

Answer:

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No journal entry at the time of discounting of bill in the books of drawee. The entry for discounting a bill in drawer's journal shows increase in drawer's bank balance at present value (face value - discount given), increase in a loss (discount given) and decrease in an asset (bill receivable)