a) Calculate the rebate on bills discounted for the above bills. (4 Marks) b) Show the balance of Discount transferred to Income statement in the books of OAB (1 Mark) bank Case Study: 2 PART-B (5 Marks) Mr. Khalid is a local exporter in Oman and exports handicrafts to various countries. During his sales last year he exported goods to Qatar, UAE, Egypt, and Saudi Arabia. Ms. Fatma is an importer from UAE and very fond of handicrafts from Oman Khalid is flexible in his transactions with its customers and provides them with both the options Le cash and credit. On 11 February 2020, Khalid exported goods to Fatma for OMR 52,000. Fatma agreed payment terms with him and it was decided that she will make 25% in cash and remaining would be paid after 180 days and later to which Khalid drew a 90 days for OMR 52,000. Fatma received the bill and returned it unaccepted. As the bill was unaccepted, on 20 February Khalid drew a new bill for the remaining amount on Fatma, which was accepted On 14 April Khalid required funds, he tried to arrange through various sources however nothing worked in his favor, and on 5 April he decided to get the bill discounted with Oman Arab Bank @6%p.a. being its corporate customer. Bank purchased the bill of exchange from Khalid and gave him the discounted amount. Due to COVID-19, UAE was in complete lockdown hence when the bill was about to mature she expressed her inability to meet the payments. Consequently, the bill was dishonored. Assume that the bank prepares its financial statements at the end of the year as on 31 December You are required to: a) Comment why Khalid has to draw the second bill on Fatma and explain the reasons for bills getting unaccepted (150 words minimum/2 Marks) b) Discuss the process of discounting bills from the acceptance until dishonored with all the necessary calculations. (100 words minimum/ 1.5 Marks) c) Give journal entries in the books of banks assuming the bill is met at maturity. (1.5 Marks) 7 Page Case 3: Part A (5 Marks) National Life & General Insurance Company is one of the leading insurance companies in the Sultanate of Oman and always on the lookout for talented, committed, and qualified people who are driven to achieve profitable growth for the company as well as motivated to progress in their career. You are a fresh accounting graduate and joined the company, as a part of your training manager of the company asked you to join as an assistant to the actuaries As trainee actuaries explained to you that the Revenue account or Balance sheet of a life a) Calculate the rebate on bills discounted for the above bills. (4 Marks) b) Show the balance of Discount transferred to Income statement in the books of OAB (1 Mark) bank Case Study: 2 PART-B (5 Marks) Mr. Khalid is a local exporter in Oman and exports handicrafts to various countries. During his sales last year he exported goods to Qatar, UAE, Egypt, and Saudi Arabia. Ms. Fatma is an importer from UAE and very fond of handicrafts from Oman Khalid is flexible in his transactions with its customers and provides them with both the options Le cash and credit. On 11 February 2020, Khalid exported goods to Fatma for OMR 52,000. Fatma agreed payment terms with him and it was decided that she will make 25% in cash and remaining would be paid after 180 days and later to which Khalid drew a 90 days for OMR 52,000. Fatma received the bill and returned it unaccepted. As the bill was unaccepted, on 20 February Khalid drew a new bill for the remaining amount on Fatma, which was accepted On 14 April Khalid required funds, he tried to arrange through various sources however nothing worked in his favor, and on 5 April he decided to get the bill discounted with Oman Arab Bank @6%p.a. being its corporate customer. Bank purchased the bill of exchange from Khalid and gave him the discounted amount. Due to COVID-19, UAE was in complete lockdown hence when the bill was about to mature she expressed her inability to meet the payments. Consequently, the bill was dishonored. Assume that the bank prepares its financial statements at the end of the year as on 31 December You are required to: a) Comment why Khalid has to draw the second bill on Fatma and explain the reasons for bills getting unaccepted (150 words minimum/2 Marks) b) Discuss the process of discounting bills from the acceptance until dishonored with all the necessary calculations. (100 words minimum/ 1.5 Marks) c) Give journal entries in the books of banks assuming the bill is met at maturity. (1.5 Marks) 7 Page Case 3: Part A (5 Marks) National Life & General Insurance Company is one of the leading insurance companies in the Sultanate of Oman and always on the lookout for talented, committed, and qualified people who are driven to achieve profitable growth for the company as well as motivated to progress in their career. You are a fresh accounting graduate and joined the company, as a part of your training manager of the company asked you to join as an assistant to the actuaries As trainee actuaries explained to you that the Revenue account or Balance sheet of a life