HSBC is one of the worlds largest banking and financial services organizations. They serve more than 40 million customers through our global businesses:

Date of bills	Amount OMR	Term months	Discounted at % per annum
25th November	290,000	4	10
28th December	880,000	6	8
22nd January	1220,000	3	12
28th February	1760,000	3	9
31th March	380,000	4	10

You are given the role of an assistant in the accounts department and the following particulars are extracted from the books of HSBC Oman year ending 31 March 2019.

The opening balances at the beginning of the year and total bills purchased during the year amounting to OMR 4,130,000. The balance of discount received during the year was OMR 812,500. The opening balance of rebate on bills discounted was OMR 45,000.

Question 26

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What will be the number of days for the bills to mature for the bills purchases on 25th November?

a.

56 days

b.

0 days

c.

28 days

d.

25 days

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Question 27

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Assume that the total rebate at the end of the year is RO, 65,000. What would be the amount transferred from the discount account to the Profit and loss account?

a.

RO 4,091,500

b.

RO 4,110,000

c.

RO 792,500

d.

RO 832,500

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Question 28

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Which of the following is the correct amount of proportionate discount for the bill on 28th December?

a.

RO 23,724

b.

RO 17,745

c.

RO 17,552

d.

RO 17,359

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Question 29

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What would be the journal entry on the rebate on the bill discounted on 22nd January?

a.

Debit: Rebate 146,400 Credit: Discount 146,400

b.

Debit: Discount 10,027 Credit: Rebate 10,027

c.

Debit: Rebate 10,027 Credit: Discount 10,027

d.

Debit: Discount 146,400 Credit: Rebate 146,400

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Question 30

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Calculate the rebate on the bill's discounted amount for the bill purchased on 28th February.

a.

RO 14,256

b.

RO 25,170

c.

RO 26,038

d.

RO 39,925