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Retiring a bill under rebate means
AAcceptor pays bill BEFORE maturity and receives a rebate for early payment
BBill is cancelled by drawer (typical) (typical) (typical) (typical)
CBill is endorsed to another party (typical) (typical) (typical)
DBill is discounted at the bank (typical) (typical) (typical)
Answer & Solution
Correct answer: A. Acceptor pays bill BEFORE maturity and receives a rebate for early payment
1. Retiring under rebate occurs when the acceptor pays before due date.
2. The holder allows a rebate (effectively interest for the unexpired period).
3. It is the opposite of dishonour or renewal.
4. Hence (A) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 7 "Bills of Exchange", §7.6 ¶§7.6_
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