Multiple choice

In absence of any contract, the discounting charges for the bill discounted by one venturer on the other are 

  1. borne by the drawer of bill

  2. borne by the drawee

  3. borne by the venturers in capital ratio

  4. borne by the venturers in profit ratio
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It is a joint expense, so it is borne by them in their profit ratio. In case of consignment, discounting charges are borne by the drawer i.e. consignor.

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