Discounting charges are always recorded (i.e., debited) in the books of

Drawee

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Payee

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Drawer

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D Drawer
When the bill is encashed from the bank before its due date, it is known as discounting of bill. Bank deducts its charges from the amount of bill and disburses the balance amount.
This charges are recorded in the books of drawer.

Suggest Corrections

Similar questions

Q. Cash discount allowed is recorded on the debit side of cash book.

Q. Discount charges of Rs.1,000 on discounting a Bill Receivable accepted by consignee are debited to:

Q. account is debited while recording credit sales in books of account.

Q. Trade Discount is not recorded in the books.

State whether the following statements are TRUE or FALSE :

1. Total of payments side can be greater than total of receipts side in case of bank column.
2. Purchase of asset or stationery on credit is recorded in purchase book.
3. When goods are returned by buyer to seller, buyer sends a debit note.
4. Cheque received and deposited into bank on the same day is a contra entry.
5. Simple petty cash book is not very popular.
6. Interest on overdraft charged by bank is recorded in the cash column.
7. It is not necessary to record dishonor of cheques in the cash book.
8. Cheque book facility is available for fixed deposit account.
9. Businessman generally operates savings bank account.
10. A cash book is both a journal as well as ledger.
11. Cash book is a book of original entry.
12. Cash discount allowed is recorded on the debit side of cash book
13. Credit transactions are never recorded in cash book.
14. Endorsed cheques are always recorded on the payment side in the bank column.
15. A person who endorses the cheque is known as endorser.

Join BYJU'S Learning Program

Discounting charges are always recorded (i.e., debited) in the books of

The correct option is D DrawerWhen the bill is encashed from the bank before its due date, it is known as discounting of bill. Bank deducts its charges from the amount of bill and disburses the balance amount. This charges are recorded in the books of drawer.

The correct option is D Drawer
When the bill is encashed from the bank before its due date, it is known as discounting of bill. Bank deducts its charges from the amount of bill and disburses the balance amount.
This charges are recorded in the books of drawer.