Question

rebate on bills discounted for a banking company is​

Answer 1

Answer:

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.

Explanation:

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Answer 2

Rebate on bills discounted for a banking company:

• Discounted bill rebates are sometimes known as discounts received in advance, or discounts received but not earned.
• In this case, the rebate on bill discounts will be removed from interest and discount in the profit and loss account and displayed on the balance sheet as a liability.

Example:

Unreal Corp. supplied goods worth Rs. 10,000 to ABC Corp., however some of the goods were of poor quality; as a result, after a mutual agreement, Unreal Corp. allowed reimbursement of Rs. 1,000, or 10%.