Styles Case 4: PART - B (5 Marks) Ms. Safa is a local exporter in Oman and exports cosmetics products to various countries. She holds her account with HSBC. In order to promote and develop her foreign trade, Safa, has planned to have credit transactions with her customers. As she had a good credit score, HSBC purchases the bill of exchange and discount immediately. During the year she got a new importer for her products. On 1st May 2019, Safa exported 2,800 units to Ms. Maria an importer from the Philippines, goods valued at OMR 28,000, and the bill was drawn for 4 months. On 2nd June 2019. Safa as her regular practice, discounted the bill @ 8% with HSBC. It was informed to her imported that the bill has been endorsed and now she should make the payments on the completion of tenure to HSBC. Maria accepted the draft on the presentation after discounting and when the bill was about to mature she expressed her inability to meet the payments. Consequently, the bill was dishonored. 10 No Spac... Heading 1 Heading 2 Title Paragraph Styles As the first bill was dishonored Safa drew a new bill on Maria 5th August for a month with a penalty of OMR 600 for late payments, Maria accepted and returned immediately and the bill was duly met on the due date. Assume that the bank prepares its financial statements at the end of the year as on 31st December. You are required to: a) Comment on the consequences and action when a bill gets dishonored on the date of maturity (100 words minimum/1.5 Marks) b) Calculate the amount received by HSBC on discounting the bills and explain if Safa. incurred any loss on the bill dishonored. (150 words minimum/2 Marks) c) Give necessary journal entries in the books of the bank (1.5 Marks) Styles Case 4: PART - B (5 Marks) Ms. Safa is a local exporter in Oman and exports cosmetics products to various countries. She holds her account with HSBC. In order to promote and develop her foreign trade, Safa, has planned to have credit transactions with her customers. As she had a good credit score, HSBC purchases the bill of exchange and discount immediately. During the year she got a new importer for her products. On 1st May 2019, Safa exported 2,800 units to Ms. Maria an importer from the Philippines, goods valued at OMR 28,000, and the bill was drawn for 4 months. On 2nd June 2019. Safa as her regular practice, discounted the bill @ 8% with HSBC. It was informed to her imported that the bill has been endorsed and now she should make the payments on the completion of tenure to HSBC. Maria accepted the draft on the presentation after discounting and when the bill was about to mature she expressed her inability to meet the payments. Consequently, the bill was dishonored. 10 No Spac... Heading 1 Heading 2 Title Paragraph Styles As the first bill was dishonored Safa drew a new bill on Maria 5th August for a month with a penalty of OMR 600 for late payments, Maria accepted and returned immediately and the bill was duly met on the due date. Assume that the bank prepares its financial statements at the end of the year as on 31st December. You are required to: a) Comment on the consequences and action when a bill gets dishonored on the date of maturity (100 words minimum/1.5 Marks) b) Calculate the amount received by HSBC on discounting the bills and explain if Safa. incurred any loss on the bill dishonored. (150 words minimum/2 Marks) c) Give necessary journal entries in the books of the bank (1.5 Marks)