Question

In holding company accounts liability in respect of bills discounted is a

Answer 1

Rebate on Bills Discounted is also known as Discount Received in Advance, or, Unexpired Discount or, Discount Received but not earned.

Its treatment is same as we do in the case of Interest Received in Advance.

Thus:

(i) If it is given only in the Trial Balance:

— the same will be shown as a liability and will appear in the liability side of the Balance Sheet