Accounting

Question 19 On June 15, Arab Bank approved to open an L/C account for one of its client's with the amount of JD Not yet answered 200000. The bank deducted from the client's current account : 25% of the L/C value as a coverage and 1% Marked out of 1.00 as a commission. It transferred the amount of the coverage to the correspondent bank (Bank of America) P Flag question through the central bank. The entry of transferring the coverage to the bank of America is: Select one: a. Dr. Client's current A/C 202000 Cr. Cash coverage 200000 Cr. commission revenue 2000 b. Dr. Bank of America -L/Cs 50000 Cr. Central bank 50000 c. Dr. Bank of America -L/Cs 50000 Cr. Bank of America - current A/C 50000 @ d. Dr. Client's current A/C 52000 Cr. Cash coverage 50000 Cr. commission revenue 2000