If consignor draws a bill on consignee and discounted it with the banker the discounting charges will be debited in ___________.

General P/L

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Consignment A/c

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Consignee

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Debtors

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Solution

The correct option is B Consignment A/c
If the consignor draws a bill on the consignee and discounts it with the banker the discounting charges will be debited to the consignment account. This is because the discounting charges are an expense for the consignor which has been incurred on account of the consignment.

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