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 31^stDecember 2016 and pass the journal entries. You can take rate of discount at 10%pa.