A: When a bill is discounted, the bank charges a fee called discounting charges. R: Discounting charges are debited to the Discount Account. Choose the correct option.
A. A is true but R is false
B. Both A and R are true and R is the correct explanation of A
C. Both A and R are true but R is NOT the correct explanation of A
D. A is false but R is true
Answer: Option C
Solution (By JKSSB Mock Tests)
When a bill is discounted, the bank deducts a fee (discounting charges) for providing early cash. This fee is a financial expense and is debited to the Discount Account. Both are true, but R doesn't explain *why* the bank charges it (which is for providing early funds).
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