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State whether the following statements are True or False with reasons:If a bill is discounted by the holder, no entry is passed in his book when the bill is honoured on the due date. |
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Answer» This statement is True. On discounting the bill the holder gives the possession of the bill to the bank. On the maturity date, the bank has to present the bill to the drawee to collect the payment. When the discounted bill is honoured, the transaction takes place between drawee and bank. |
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