Following facts have been taken out from the records of Dee Bank Ltd. as on 31st March, 2015: Dr. ($) Cr. ($) Rebate on bills discounted (not due on March 31st, 2014) 45,800 Discount Received 2,02,500 Bills Received 12,25,000 An analysis of the bills discounted is as follows: Amount Due Date Rate of Discount $ 2015 (i) 3,75,000 Apr-08 12% (ii) 1,50,000 May-05 14% (ii) 2,20,000 Jun-12 14% (iv) 4,80,000 Jul-15 15% You are required to: Calculate rebate on bills discounted as on 31st March, 2015. (i) (ii) The amount of discount to be credited to the Profit and Loss Account. (iii) (iv) Show necessary journal entries in the books of Dee Bank Ltd. as on 31st March, 2015. How the relevant items will appear in the Bank's Balance Sheet.
Following facts have been taken out from the records of Dee Bank Ltd. as on 31st March, 2015: Dr. ($) Cr. ($) Rebate on bills discounted (not due on March 31st, 2014) 45,800 Discount Received 2,02,500 Bills Received 12,25,000 An analysis of the bills discounted is as follows: Amount Due Date Rate of Discount $ 2015 (i) 3,75,000 Apr-08 12% (ii) 1,50,000 May-05 14% (ii) 2,20,000 Jun-12 14% (iv) 4,80,000 Jul-15 15% You are required to: Calculate rebate on bills discounted as on 31st March, 2015. (i) (ii) The amount of discount to be credited to the Profit and Loss Account. (iii) (iv) Show necessary journal entries in the books of Dee Bank Ltd. as on 31st March, 2015. How the relevant items will appear in the Bank's Balance Sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Following facts have been taken out from the records of Dee Bank Ltd. as on 31st March, 2015:
Dr. ($)
Cr. ($)
Rebate on bills discounted (not due on March 31st, 2014)
45,800
Discount Received
2,02,500
Bills Received
12,25,000
An analysis of the bills discounted is as follows:
Amount
Due Date
Rate of Discount
$
2015
(i)
3,75,000
Apr-08
12%
(ii)
1,50,000
Мay-05
14%
(ii)
2,20,000
Jun-12
14%
(iv)
4,80,000
Jul-15
15%
You are required to:
(i)
Calculate rebate on bills discounted as on 31St March, 2015.
(ii)
(iii)
(iv)
The amount of discount to be credited to the Profit and Loss Account.
Show necessary journal entries in the books of Dee Bank Ltd. as on 31st March, 2015.
How the relevant items will appear in the Bank's Balance Sheet.
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