1)On January 1, 2020, Jewels INC issued bonds with a par value of OMR 500,000 at 95 due in 2028. On January 1, 2022, the entire issue was called at 105 and cancelled. Interest is paid annually, and the Discount is amortized using the straight-line method.

1. Calculate the profit or loss on the redemption. (2 marks)
2. What is the procedure followed to amortize the bonds? (2 marks)

2) Jewels INC is a successful business and it has good reputation with the public due to the quality of products it offers in the market. On 19^th June 2019, the company offered three types of bonds to the public. They are Irredeemable, Callable bonds and Mortgage bonds. Investors have the choice of selecting the type of bond issued.

1. If you wish to invest in the bonds of Jewels INC which type of bond you will select to invest? Discuss in detail supporting your answer (1 marks)

3) The following is an analysis of the bills purchased and discounted from the books of accounts of a Huda Bank as at 31^st March 2019.

Bills Purchased & discounted 1,800,000

Rebate on bills discounted (1 April 2018) 110,500

Discount Received 930,500

Date of bills purchased	Amount RO	Term months	Discounted at % p.a
November 15	650,000	4	8
December 25	400,000	4	12
January 28	750,000	3	11
February 20	900,000	2	9
March 19	200,000	4	10

Required:

1. Calculate the rebate on bills discounted (2.5 Marks)
2. Pass the necessary journal entries (1 Marks)
3. Show the discount account in the books of Huda Bank (0.5 Mark)