Maharashtra State BoardHSC Commerce 12th Board Exam
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Payment before the Due Date of Bill. - Book Keeping and Accountancy

Payment before the due date of bill.
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Solution

Retirement of a Bill of Exchange

Explanation:

Retiring a bill means making payment before the date of maturity. When the acceptor of bill is willing to make the payment of the bill before its due date, then he/she may approach the holder of the bill to accept early payment. The holder generally allows some discount (or rebate) for the unexpired period. Such rebate or discount is an expense for the party receiving the payment and gain for the party making the payment.

Concept: Important Terms of Bills of Exchange - Due Date
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