Banking Company

Souvik Kumar Ghosh (CA Final) (1368 Points)

14 May 2011

In a problem of Banking Company, the following information is given:

Interest & Discount on bills (net)= Rs.100000 , Rebate on bills- Rs.5000.

Should I deduct Rebate on bills from Interest & Discount on bills for the purpose of Schedule-13? If so, why ?

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Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 14 May 2011

Originally posted by : Souvik Kumar Ghosh
	In a problem of Banking Company, the following information is given: Interest & Discount on bills (net)= Rs.100000 , Rebate on bills- Rs.5000. Should I deduct Rebate on bills from Interest & Discount on bills for the purpose of Schedule-13? If so, why ?

The opening balance oof rebate on bills will be Added back and the closing balance will be deducted from the Interest/discount on bills......!!

Because in the hands of bank the rebates on bills are lick Expeses.......!!!!!!!!!!!!

Download the attached file and solve the all questions given with solution it will clear your understanding to the best level.....!!!!!!!!!!!!!

Attached File : 279585 715831 accounts of banking companies.pdf downloaded: 191 times

Souvik Kumar Ghosh (CA Final) (1368 Points)
Replied 15 May 2011

Originally posted by : Suresh_Smiter
	Originally posted by : Souvik Kumar Ghosh In a problem of Banking Company, the following information is given: Interest & Discount on bills (net)= Rs.100000 , Rebate on bills- Rs.5000. Should I deduct Rebate on bills from Interest & Discount on bills for the purpose of Schedule-13? If so, why ? The opening balance oof rebate on bills will be Added back and the closing balance will be deducted from the Interest/discount on bills......!! Because in the hands of bank the rebates on bills are lick Expeses.......!!!!!!!!!!!! Download the attached file and solve the all questions given with solution it will clear your understanding to the best level.....!!!!!!!!!!!!!