l B.com. UNIT-2. Discounting
I B.com UNIT-2 Discounting Definition[Discounting] Instead of waiting till the legally due date, the drawer of a bill of exchange may give it to a banker or a broker and get a sum of money which is less than its face value. This transaction is known as discounting. Definition[Discount Period] The period of time between the legally due date and the date of discounting of a bill is the discount period. Definition[Face Value] The value due on the due date from a bill of exchange is its face value or the amount due. Definition[True Discount] The difference between the face value and the present value is the true discount. Definition[Banker’s Gain] The difference between banker’s discount and true discount is the banker’s gain. Definition*[Banker’s Discoun...