(a) As on 31/12/2015, the books of Hamed bank the following balance;

Particulars

OMR

Discount received

4,600,000

Rebate on bills discounted (1/1/2015)

320,000

Bills discounted and purchased

31,547,000

Unexpired discount is to be calculated at 18% for 2 months on bills discounted and purchased.

Show the journal entries, ledger and the calculation with amount to be transferred to profit and loss account. State how these items will appear in the balance sheet. ( 7 marks)