Sale bill discounting vs. purchase bill discounting

This query is : Resolved 

15 January 2016 Please provide the treatments for Sale bill Discounting and purchase bill Discounting with bank by the company.

16 January 2016 Invoice discounting is a form of short-term borrowing often used to improve a company's working capital and cash flow position. Invoice discounting allows a business to draw money against its sales invoices before the customer has actually paid.

16 January 2016 Invoice discounting is a form of short-term borrowing often used to improve a company's working capital and cash flow position. Invoice discounting allows a business to draw money against its sales invoices before the customer has actually paid.


26 January 2016 Bill Receivable A/c Dr.
To Debtor A/c
(On Acceptance of Bill by Drawee)

Bank A/c Dr
Discount Charges Dr
To Bills Receivable
(Bills discounted At Bank)

In Books of Drawee
Creditor A/c Dr
To Bills Payable
(On acceptance of Bill)

Bills Payable A/c Dr
To Bank
(On Presentation and payment to bank)



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries