Question
The following is an extract of the trial balance of Bank Muscat as at 31.12.2016: Rebate on bills discounted as on 01.01.2016 RO. 68259 Cr.
The following is an extract of the trial balance of Bank Muscat as at 31.12.2016:
Rebate on bills discounted as on 01.01.2016 RO. 68259 Cr.
Discount Received RO. 170156 Cr.
Below is the analysis of the bills discounted:
Bill Date Due Date Amount (OMR)
15 Sep 2016 23 Feb 2017 280,000
01 Oct 2016 28 Feb 2017 870,000
11 Nov 2016 10 Mar 2017 550,000
08 Dec 2016 25 Mar 2017 810,000
24 Dec 2016 01 Apr 2017 600,000
You are required to find out the amount of discount to be credited to profit and loss account for the year ending 31stDecember 2016 and pass the journal entries. You can take rate of discount at 10%pa.
The following is an extract of the trial balance of Bank Muscat as at 31.12.2016:
Rebate on bills discounted as on 01.01.2016 RO. 68259 Cr.
Discount Received RO. 170156 Cr.
Below is the analysis of the bills discounted:
Bill Date Due Date Amount (OMR)
15 Sep 2016 23 Feb 2017 280,000
01 Oct 2016 28 Feb 2017 870,000
11 Nov 2016 10 Mar 2017 550,000
08 Dec 2016 25 Mar 2017 810,000
24 Dec 2016 01 Apr 2017 600,000
You are required to find out the amount of discount to be credited to profit and loss account for the year ending 31stDecember 2016 and pass the journal entries. You can take rate of discount at 10%pa.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0697789938
