Practice 6: The following is an analysis of the bills discounted from the books of accounts of a AMBank as at 31st December 2017Bills discounted6,000,000Rebate on bills discounted (1 January 2017)50,000Discount Received150,000Date of billsAmount ROTerm monthsDiscounted at % p.aOctober 201,200,000212November 51,000,000410December 5600,000212December 20300,000310Required: Calculate the rebate on bills discounted for the above bills.•Pass the journal entries and•Show the discount and interest and rebate on bills discounted account in the ledger books of bank.

(i) October 20: all 2 months fall in the year 2017, hence no rebate on bills discounted. (ii)…

Answered: •Pass the journal entries and •Show the…

•Pass the journal entries and •Show the discount and interest and rebate on bills discounted account in the ledger books of bank.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 3CE

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Practice 6: The following is an analysis of the bills discounted from the books of accounts of a AM Bank as at 31st December 2017 Bills discounted 6,000,000 50,000 150,000 Rebate on bills discounted (1 January 2017) Discount Received Date of bills Amount RO Term months Discounted at % p.a October 20 1,200,000 12 November 5 1,000,000 4 10 December 5 600,000 2 12 December 20 300,000 10 Required: Calculate the rebate on bills discounted for the above bills. •Pass the journal entries and •Show the discount and interest and rebate on bills discounted account in the ledger books of bank.
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