Bills of exchange

kannan (jobless) (263 Points)

22 September 2016  
When Drawer discounting his bills and receive cash from bank

in the books of bank the entry is

Bills Discounted A/c Dr.

To Drawer's current A/c
To Discount A/c


๐Ÿ‘†๐Ÿ‘†๐Ÿ‘†๐Ÿ‘†๐Ÿ‘†My query is why we are crediting the Drawer's current A/c ... whether it is a liability to the bank?ยฟ

kindly help me