discounting of bill of exchange

Shweta (student) (28 Points)

13 December 2017

what is the presentation of debtors in the balance sheet after discounting of the bill but before its maturity?

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8 Replies

Sony Sony (136 Points)
Replied 13 December 2017

when bill is received sundry debtors account is cancelled there is no more debtors account to show

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Shweta (student) (28 Points)
Replied 13 December 2017

no i meant under trade receivables.. is it removed completely once discounted with the bank?

Sony Sony (136 Points)
Replied 13 December 2017

plzz tell me what course u r pursuing I can explain in that way

Sony Sony (136 Points)
Replied 13 December 2017

yeah it is removed

Sony Sony (136 Points)
Replied 13 December 2017

I think so

Shweta (student) (28 Points)
Replied 13 December 2017

okay thank you

Fan of Nm (411 Points)
Replied 13 December 2017

Yes it's removed from Bills Receivable, but in BS (Notes) the same amount will be shown as Contingent liability.

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Shweta (student) (28 Points)
Replied 13 December 2017

thank you

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