alleryRetirement of a bill before due date means:
ADrawer cancels bill totally
BDrawee pays early with rebate
CBank forfeits bill amount
DBill is endorsed to creditor
Answer & Solution
Correct answer: B. Drawee pays early with rebate
1. Retirement = drawee pays earlier than due date.
2. Drawer allows a rebate (interest for unexpired period).
3. Entry: Cash/Bank Dr + Rebate Dr; To Bills Receivable.
_Source: ICAI BoS Foundation Paper 1, Ch 6 "Bills of Exchange", §8 retirement_
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