Accounting for Sale bill discounting

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Rajesh (Querist)
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09 June 2010 What are the entries to be passed for sale bill discounting.
1. Accounting the bill
2. Discounting the bill
3. Bank charges recording
4. When bill honoured
5. When bill not honoured.
6. When bill honoured lately.

Thanks for the experts who took time to read and guide.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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09 June 2010 1.Accounting the Bill is normal Sales Entry
2.Discounting the bill: Dr: Bill receivable Cr: S.Debtors
3.Dr:Bank charges Cr:S.Debtors

4.Honoured : Dr:Bank A/c Cr:Bills receivable A/c

5.If Not Honoured: Dr: S.Debtors Cr.Bill Receivables

6.Either entry 4 or 5

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