Meaning

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Nashme T.J (Querist)
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04 August 2011 Dear Sir/Madam,

I got a question in mock test like, What is the accounting entry passed, in the drawer's books when the bill is discounted with the bank?

Could u please explain me what is the meaning of the bill discounted with the bank.

Thanks and regards,
Ms. Nashme T.J

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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04 August 2011 When a bill is discounted at bank:
B/R A/C............XXX
Drawer A/C.......XXX
Discount A/C.....XXX
(Bill discounted)

Drawer's Journal
No entry in the books of drawer.

drawers journal:

Bill payable A/C...XXX
Cash A/C.........XXX
Acceptance honored and cash paid to bank on presentation of the bill.