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Bill of Exchange — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountBill of Exchange3 Marks
Question
What is meant by 'Retiring a bill under rebate'?
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Answer

Retiring a Bill under Rebate When the drawee makes the payment of the bill before its due date, it is called retiring the bill. In such a case, the holder of the bill usually allows him discount, technically called “rebate'. Such rebate is calculated at a specified rate per annum for the period the payment is being made too early. The rebate is a gain to the party making the payment and an expense to the party receiving the payment.

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