When we discount a bill, we're basically giving early cash to the holder by paying less than the face value, booking the difference as interest expense. If it gets dishonoured, you must reverse the receivable and charge the drawer the full amount plus noting charges. But, yenri, in my kitchen accounts, trust is the real currency; I've seen more deals honoured on a handshake than on some fancy discounted bills. All this noting charge drama just means someone's word wasn't as solid as a well-steamed idli :-)
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