Chq discounting can be done if we have arrangement & facility with our Bank . Fox example if you hv a chq for Rs:5.00 lacs Outstation other than metro city which will take 7 to 15 days for clearing you can discount. Becoz the realisation of 5.00 lacs ( after Ban k charges) will take after it send outstation for clearing. Whereas if you need money urgently you can discount with the Banker and they will give you some portion of % from 5.00 lacs which they will charge. Say (for exampel tey will give credit for 4 or 4.25 lacs) . On the contrary if that chq passes after the relevent days for 5.00 lacs they will credit balance amount to your account. Most of the business houses use to do so. Banker is also having our instruments in his hand . Whereas if the chq bounces we have to pay heavy amount together with interest.
Anoop Menon
Sr. Accountant
Anoop Menon
Sr. Accountant
