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What is meant by retiring of the bill?
Our team of experts retiring a bill under rebate assignment help explains as Retiring of bill happens when acceptor of bill is ready to pay bill or retire bill before the maturity date. In these cases, drawer of bill can allow some discounts which depend on the number of months before maturity of bill.
Thus this discount is a gain to acceptor and loss to drawer. It is said that retiring of a bill is similar to accepting an honouredbill on adue date. The only difference is the rebate amount.
The entries made in the journals:
- Cash account as amount received inactual bill
- Rebate account
- To bill receivable account
- Bill payable account
- To cash account
- To rebate account
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