Can anyone please tell me about how the bills are discounted with the banks??? i want to know about export and import bills discounted.. how the accounting system works?? please make sure that the answer is from basics.. i am new to accounting so please help me out..
Hi Nirmal,
Discounting of Bills is like taken Term Loan from Bank, i will give you a example here, supose your bank C/A is in SBI and you discounted you bills from SBI.then you have to open two ledgers on SBI Loan A/c and other is your C/a bank a/c, now when you discounted your bills the entry would be :
SBI current A/c Dr
To SBI Bill Discounting Loan A/c
still,if you have any problem write here
CAclubindia
