Question

Write short note on Discounting of Bill of exchange.

Answer 1

Definition and Explanation ofDiscounting a Bill: ... After getting thebill, the bank will pay cash to the drawer equal to the face value less interest or discount at an agreed rate for the number of days it has to run. This process is know as discountingof a bill of exchange.

Answer 2

Definition and Explanation ofDiscounting a Bill: ... After getting thebill, the bank will pay cash to the drawer equal to the face value less interest or discount at an agreed rate for the number of days it has to run. This process is know as discounting ofa bill of exchange.