Never Go Wrong with a Discounting Assignment: Get Homework Help
What is discounting?
Discounting is a term everyone is familiar with and you don’t have to be an accounting student to know about the basic concept of discounting. It is the instance when a seller offers or allows a rebate on the original price of the commodity, selling it at a lower price. However, in accounting terms, the word tends to have some other meanings too and with the right discounting assignment help, you too will learn about it!
Discounting in accounting:
In accounting, discounting is a mechanism which allows a debtor to gain some more time for his payment, or in other words, to delay his payments which are due to a debtor and he is only made to pay a charge for this delay period. Discounting does not lead to a loss of any sort on the part of the creditor because the discount rate (at which the debtor is charged for delay) is often such that it almost works as an interest. This would mean, if the creditor invested his money elsewhere, he would be earning a similar interest which he earns by discounting the amount.
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Discounting of bills:
Discounting of bills is a separate but related mechanism whereby the creditor who owes money from a debtor can get their bills discounted or get the amount paid by the bank before the actual date of payment. Here, instead of delaying the payment, the creditor is asking for payment before the due date. The bank with pay them the amount after deducting certain charges and later on the actual date of payment, the bank with receive the money from the debtor.
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