Question

Rebate or discount given on retiring a bill is an income to the drawee.

Options

• Agree

• Disagree

Answer 1

I agree with the given statement.

Explanation:

Making payment of a bill well before the date of maturity is known as retirement of a bill. When the acceptor of a bill makes payment to the holder before the due date, it is known as retiring a bill. Drawer allows some Discount or Rebate to the Drawee for the unexpired period. This rebate in an expense to the Drawer or Holder and income to the Drawee or Acceptor.