Question

Methods of rebate on bill discounted

Answer 1

hey

Accounting Steps:

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

The same will be shown as a liability and will appear in the Liabilities side of the Balance Sheet.

(b) If it is given in adjustment:

The following entry is required to be passed:

Interest and Discount A/c Dr.

To Rebate on Bills Discounted A/c

In other words, the same is deducted from Interest and Discount Account in Profit and Loss Account and the same will also appear in the Liability side of the Balance Sheet.

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