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Answer in one sentence. What do you mean by discounting a bill of exchange? - Book Keeping and Accountancy

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Question

Answer in one sentence.

What do you mean by discounting a bill of exchange?

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Solution

Encashment of a bill of exchange with the bank for certain cash which is less than the face value of the bill, before its due date by its drawer or holder is called Discounting of a Bill of Exchange.

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Chapter 7: Bills of Exchange - Exercise 7.1 (Objective Questions) [Page 303]

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Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
Chapter 7 Bills of Exchange
Exercise 7.1 (Objective Questions) | Q F. 3) | Page 303
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