Teller General Knowledge - How To Keep Accounts Receivable Due To The Bank When It Is Discounted?

If a company's notes receivable hold a tight fund before maturity, they may apply for a discount to the Bank of their account with an undue commercial draft.

The relevant formulas for bills discounting are as follows:

(1) discount on interest free bills: discount interest = bills face value * discount rate * discount days /360 discount days = duration of notes - the period when the enterprise holds the bill = the actual days -1 of the discount date to the maturity date of the bill (Note: the acceptor's calculation of discount interest in another place should add 3 days' date of payment).

(2) discount on interest bearing bills: the amount of discounted proceeds = the maturity value of the bill - discount interest note maturity value = the face value of the bill (1 years interest rate * maturity date of the bill 360)

If an enterprise has made an unearned bill receivable, discounting it to the bank, it shall, on the basis of the fourth joint account receivable returned by the bank's seal, deduct the account of the bank deposit according to the amount actually received (i.e. the net amount after deducting the discount interest), borrow the "financial expense" account according to the discount part, and credit the account according to the balance of the receivable.

In the case of notes receivable with interest, the bank account is debited according to the amount actually received, and the account is credited according to the book balance of the notes receivable, and the "financial expense" account is debited or credited on the basis of its difference.

Namely:

Borrower: bank deposits (discounted by commercial draft)

Financial expenses (the difference between discount income and par value)

Loan: notes receivable (denomination of commercial discounts)

Financial expenses (the difference between discount income and par value)

When the discounted commercial acceptance bill expires and the payment is insufficient for the acceptor's bank account, the enterprise that applies for discounting receives the receivable, the notice of payment and the notice of refusal to pay the bank's receipt, or the debtor's unpaid note, and debit the accounts receivable account according to the principal and interest paid, and credited the account of the bank deposit. If the bank account of the discounted enterprise has insufficient balance, the bank should pay the principal and interest of the loan as the principal and interest of the loan, debit the accounts receivable account, and credit the short-term loan account.