Case Study: 1 PART-A (5 Marks) Oman Arab Bank is one of the most active banks in Trade and Project Finance in the Sultanate of Oman. The bank derives its strength from its close association with Arab Bank Jordan and its access to its large network of branches globally (400 branches in over 33 countries) gives it a competitive edge in the Trade and Corporate Finance areas. Oman Arab Bank offers a wide range of services in the following area of Trade Finance: Bank Guarantee, Standby Letters of Credit, and Discounting of bills of exchange. You are a newly joined assistant in the accounts department and the following particulars are extracted from the books of OAB for the year ending 31 March 2020: OAB purchased bills from its various Corporate Customers on different dates throughout the year worth OMR 3,300,000. Rebate on bills discounted balance at the beginning of the year 2019 OMR 110,500; Discount received during the year was OMR 730,500 While calculating the rehate on bills discounted, the bank generally considers 365 per annum except for a leap year. Additional information on bills discounted during the year is as follows: Date of bills Amount (OMR) Term months 4 15th November 25th December 1st January 650,000 350,000 150,000 Discounted at % per annum 8 12 10 4 2 41 Page 3 11 28th January 20th February 19th March 750,000 900,000 500,000 4 9 10 4 You are required to prepare: a) Calculate the rebate on bills discounted for the above bills. b) Show the discount account in the books of OAB bank (4 Marks) (1 Mark)