-> Suppose a merchant A buys goods worth Rs.10000 from another    
   merchant B at a credit of say 5 months
-> Then,B prepares a bill , called the bill of exchange 
-> A signs this bill & allows B to withdraw the amount from his bank   
   account after exactly 5 months,the date exactly after 5 months is called
   Nominally due date
-> Three days (grace days) are added to it get a date known as legally due 
   date
-> Suppose B wants to have money before legally due date then he can have 
   the money from banker or a broker who deducts S.I on the face value 
   (i.e., 10000) for the period from the date on which the bill was  
   discounted (i.e paied by the banker) & the legally due date this amount
   is known as Bankers Discount
-> Thus , B.D is the S.I on the face for the period from the date on which 
   the bill was discounted and the legally due date
-> Bankers Gain (B.G) = (B.D) – (T.D) for the unexpired time

Note:- When the date of the bill is not given,grace days are not to be added

Formulae:-

(1)B.D = S.I on bill for unexpired time
(2)B.G = (B.D) – (T.D) = S.I on T.D = (T.D)^2 /P.W
(3)T.D = sqrt(P.W * B.G)
(4)B.D = (Amount * Rate * Time)/100
(5)T.D = (Amount * Rate * Time)/(100+(Rate * time)
(6)Amount = (B.D * T.D)/(B.D – T.D)
(7)T.D = (B.G * 100)/(Rate * Time) 


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