37) Joe discounted a bill of exchange face value OMR 6,000 with the bank, and bank charged a discount of OMR 300.What is the journal entry in the books of the bank? e value OMR 6,000 with the bank, and bank charged a discount of OMR 300ik?Dr Bills discounted 6,000 Cr Joe 5,700 Cr Interest and discount 300Dr Interest and discount 300 Cr Bills discounted 6,000 Dr Joe ,700None of theseDr Bills discounted 6,000 Cr Joe 5,700 Cr Interest and discount 300

Total cash paid = Face value of bill - discount amount = OMR 6,000 - OMR 300 = OMR 5,700

Answered: Joe discounted a bill of exchange face…

Joe discounted a bill of exchange face value OMR 6,000 with the bank, and bank charged a discount of OMR 300.What is the journal entry in the books of the bank?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

37) Joe discounted a bill of exchange face value OMR 6,000 with the bank, and bank charged a discount of OMR 300.What is the journal entry in the books of the bank?

e value OMR 6,000 with the bank, and bank charged a discount of OMR 300
ik?
Dr Bills discounted 6,000 Cr Joe 5,700 Cr Interest and discount 300
Dr Interest and discount 300 Cr Bills discounted 6,000 Dr Joe ,700
None of these
Dr Bills discounted 6,000 Cr Joe 5,700 Cr Interest and discount 300

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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