Mr. Ashok (drawee) retires his acceptance under rebate of Rs. 400, rebate a/c will be debited in the books of Ashok.

True

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False

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On Jan 01, 2016 Neha sold goods for Rs 20,000 to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @ 12% p.a. Neha agreed to the request of Muskan and Muskan retired the bill under the agreed rate of rebate. Journalise the above transaction in the books of Neha and Muskan.

Q. A owed B ₹ 400. A accepted a Bill of Exchange at 3 months for this amount which B discounted for ₹ 380.
Give the necessary Journal entries in the books of A and B if this bill is:
(a) dishonoured on the due date;
(b) met at maturity and
(c) retired under rebate at 6% p.a. 2 months before its maturity.

Q. Bank account and ___ account will be debited in the books of drawer, when acceptor retires his acceptance under rebate.

Q. Which of the following account will be credited in the books of creditor, when acceptor retires his acceptance under rebate?

A retires a bill for Rs. 1000 drawn on him by B for rebate of Rs. 10. By what cash amount should be credited in the books of B?

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