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Bill discounting is done by banks in case of only?
demand bill
What is Discounting bill of exchange?
It means when holder of a bill needs money he can take the bill to bank where the bank will discount it and chargesome interest on that
What is discounting bill exchange?
It means when holder of a bill needs money he can take the bill to bank where the bank will discount it and chargesome interest on that
Discounting of bill of exchange?
i dont know but try to find it im srry if they :D
What is Bill Discounting?
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What is the difference between bill discounting and bill purchase?
This is a technical question and according to my opinion tenor is involved in the usance bill so we use the term of discounting whereas in sight bill no tenor is involved and we have to pay on sight or at one as per UCP 600 so we purchase the bill instead of discounting as it is payable on first demand. Saifullah Arif Soneri Bank Limited Dear, According to me, Demand Bill is payable on demand, supported by doccuments to title, so it is purchased at full value by bank, while discouting means at less than value and it is just like clean finance, because usance is other than demand, a period and uncertainity is involved, usually there are no document to title to goods, so bank keep high margin and pay less than face value.So we use Purchase of Bill in term of Demand Bill and Discouting of Bill in term of Usance Bill. Sheikh Junaid, Allied Bank Limited. According to me, In case of the bill purchase, the bill is purchased and that in case of bill discounting the bank is only financing against the said bill. The title of the bill would be transferred in favour of the bank in case of Bill purchase and whereas the title of the bill remains with the party in case of Bill Discounting. Further the responsibility of recovery of the amounts under the Bill purcahse would absolutely on the bank in case of Bill Purchase and the responsibility of recovery of the money under the bill discounting would be on the party. M.V Rao, Advocate, Hyderabad
Why do you discount a bill with a bank before it mature?
since the bill of exchange is a negotiable instrument, the holder of a bill can sell it to a bank, whenever should be stand in need of money before its due date. This is called discounting the bill. The discounting charge made by the bank is the interest on the amount of the bill for the unexpired period of the bill. Such charge is known as banker's discount. It is calculated at a certain rate of interest per Annam on the amount of the bill for the unexpired period.
What is the entry for bill disconting dishonour?
The entry for a bill discounting to be dishonored is made when the drawee refuses to accept or make payment on the bill. It is dishonored by non-acceptance or non-payment.
What are the Discounting and Non-discounting Criteria of Capital Budgeting?
IRR
How do you explain discounting of accounting policies?
Explain discounting of accounting policies
Are the terms off-price and discounting interchangeable?
Are the terms off-price and discounting interchangeable? Explain.
What is a bank discount?
A bank discount is a sum equal to the interest at a given rate on the principal of a bill or note from the time of discounting until it becomes due.
