Maharashtra State BoardHSC Commerce 12th Board Exam
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Give Word / Term Or Phrase for the Following Statement. Payment of the Bill before Due Date. - Book Keeping and Accountancy

One Word Answer

Give word / term or phrase for the following statement.
Payment of the bill before due date.

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Solution

Retirement
Explanation: A bill is said to be retired when the acceptor of a bill expresses his willingness to make the payment of the bill before its due date. In such cases, the holder of the bill generally allows a discount to the drawee, which is called rebate. This rebate is a gain for the party that makes the payment (i.e. the drawee) and is expense to the party receiving the payment (i.e. the drawer).

Concept: Accounting Treatment of Bill - Retirement of Bill
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 9 Bill of Exchange (Trade Bill)
Exercise | Q 15 | Page 316
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