Question

On 1/1/2019, the rebate on bills discounted account of bank sohar showed a credit balance of OMR 100,000. On 31/12/2019, the discount account showed a credit balance of OMR 1,500,000 before adjusting unexpired discount. The bills discounted outstanding on 31/12/2019 were OMR 20,000,000 with a maturity date of January 31/1/2020. They were discounted at 12% p.a.

Write adjustment entries and relevant ledger accounts to record these items and also show how these items will appear in the final accounts of the bank

Answer 1

OMR 100000 150000 opening rebate on bills (A) Discount on bills during the year. 1) unexpired discount (to be hanstered to rebate on bills) [ 200000.COX 27 X 1 [12] (200000) > Jan 1 - Jan 31 (2020). (Dec. 31,999) 1400000 Journal entries' on opening date Colol. 19) Rebate bills ac. M to discount on bilis afc. OMR 100000 LO0000' on endly date ? (31 12:19) Discount on bills to rebate on bills afce ، ،که OMR 200000 200000 M Discount on bills of to rebate on blls at By rebate on bllls afce OMR 200000 OMR 100000 to revenue income By bills discounted 1500000 summary 1600000 1400000 1600000

01.01g to discount on bills afc 31.12.18 o balance cla Rebate on bills alc 01.01.19. By balance bld 100 100- OMR 10000 3112 19 By discount on bills alc 2000 300 od 01.01.20. By balance 20600 b4 300000