Skip to content

Accountancy · Ch 8 — Accounting for Bills of Exchange

Discounting of a Bill

8.5

Discounting of a Bill

If the holder of a bill needs funds before the due date, he can approach a bank to encash the

bill. The bank pays the amount of the bill after deducting some interest, which in this

case is called discount. This process of encashing a bill with the bank before maturity …