The next number in the series is Retirement of a bill
Sir, what is the meaning of retirement?
Paying the bill, clearing the bill is not retirement of a
bill
Paying the bill on time is called retirement of a bill
Payment which is done on time, the check was done after 3
months and it was cleared after 3 months
That is clearance of the bill
But paying the bill on time is called retirement of a bill
Till now you have heard that what will happen if the debtor
does not pay the bill on time
What will happen if the debtor pays the bill on time?
That is called retirement of a bill
We will be happy and give him a discount if he pays the
bill on time
Yes, that is called rebate
Let's see the entries
Debtor account debit to sale, BR to debtor, these entries
are fixed
When the money will come on time, the money will come on
bank account debit
And we will clear the receivable bills to bill receivable
account
And what we will give him?
We will give him a discount which is called rebate
And always when we allow a discount, whether it is in the
name of rebate or in the name of discount, it is debit
Ok sir
And here the entries are same
Purchase to creator, creator to bill payable
And with bill payable to bank
Here you are coming to rebate received account
Because the buyer who has received a leave, it is a benefit
for him
He gave money before time, he had to give 10,000 rupees
We said give 9000 because he is paying before time
Your leave of 1000 is his benefit
He will credit it according to the credit all income and
gain rule
And the rebate will be received account
Friends, friends, friends, credit
These were the entries of the retirement of the bill
It started very quickly, it ended very quickly
Yes, see you in the next clip
Thank you