Encashing the bill before the date of its maturity is called :

Discounting of bill

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Retiring the bill

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Dishonor of the bill

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Renewal of the bill

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Solution

The correct option is A
Discounting of bill

A bill may be encashed before the maturity of the bill by presenting it to any bank. the bank shall disburse the amount of bill after deducting its charges(discounting charges).

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Similar questions

Q. If the bill of exchange is honored before the maturity date, it is called the bill.

Q. Encashing the bill before the date of its maturity is called as .

Q. When the drawee (or acceptor) of the bill fails to make payment of the bill on the date of maturity, it is called

Q. If the bill is paid on the date of maturity, it is termed as of the bill.

Vimal purchased goods Rs 25,000 from Kamal on Jan 15, 2016 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity the bill was duly presented for payment. Vimal dishonoured the bill. record the necessary journal entries in the books of Kamal and Vimal when.

• The bill was retained by Kamal till the date of its maturity.

• The bill was immediately discounted by Kamal with his bank @ 6% p.a.

• The bill was endorsed by Kamal in favour of his creditor Sharad.

• Five days before its maturity the bill was sent by Kamal to his bank for collection.

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Encashing the bill before the date of its maturity is called :

The correct option is A Discounting of bill A bill may be encashed before the maturity of the bill by presenting it to any bank. the bank shall disburse the amount of bill after deducting its charges(discounting charges).

The correct option is A
Discounting of bill

A bill may be encashed before the maturity of the bill by presenting it to any bank. the bank shall disburse the amount of bill after deducting its charges(discounting charges).