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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 7RE: McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made...

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

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
Rebate on bills discounted (1 January 2017)
50,000
Discount Received
150,000
Date of bills
Amount RO
Term months
Discounted at % p.a
October 20
1,200,000
2
12
November 5
1,000,000
4
10
December 5
600,000
2
12
December 20
300,000
3
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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