Question

Where does rebate on bills discounted appears in final accounts of banking companies?

Answer 1

Answer:

Meaning of Rebate on Bills Discounted:

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.

Answer 2

(i) Discount earned (up to 31.12. 1992) will be credited to P & L A/c and unexpired discount will, however, be credited to Rebate on Bills Discounted A/c, and will appear in the liability side of the Balance Sheet.

(ii) Loans and advances will appear in the assets side of the Balance Sheet.

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