Bank retired a B/P for rs 1000 under a rebate of rs 30
What does it mean
Sarvesh,
Bills Payable is a liability of the business. The statement quoted by you means that bank has discharged the firm's liability of Rs 1,000 at a discount of 30. That is, amount paid by bank is Rs 970. This will reduce the balance of Pass Book.
Bills Payable is a liability of the business. The statement quoted by you means that bank has discharged the firm's liability of Rs 1,000 at a discount of 30. That is, amount paid by bank is Rs 970. This will reduce the balance of Pass Book.