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 |
