Retirement of the Bill

When a drawee makes the payment before the due date is called Retirement of a bill. 

Retirement is also means early payment of the bill.

Rebate:- Rebate is one type of discount earned by drawee for making the early payment of the bill.

In the Books of “Drawer”	In the Books of “Drawee”
Cash/Bank A/c Dr Rebate A/c  Dr            To Bill Receivable A/c	Bill Payable A/c Dr               To Cash/Bank A/c               To Rebate A/c

 

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