While preparing P/L account, rebate on bills discounted to be provided shall be deducted from discount received is ________.

Schedule 16

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Schedule 15

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Schedule 14

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Schedule 13

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Solution

The correct option is D Schedule 13
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.

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Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

(i) Depreciation provided on machinery Rs. 4,000 was not posted to depreciation account.

(ii) Bad debts written-off Rs. 5,000 were not posted to debtor's account.

(iii) Discount allowed to a debtor Rs. 100 on receiving cash from him was not posted to discount allowed account.

(iv) Goods withdrawn by proprietor for personal use Rs. 800 were not posted to drawings account.

(v) Bills receivable for Rs. 2,000 received from a debtor was not posted to bills receivable account.

A.Consignment A/c Discount A/c To Bills Receivable A/c	Dr. Dr.
A.Bank A/c Profit & Loss A/c To Bills Receivable A/c	Dr. Dr.
C.Bank A/c Consignment A/c To Bills Receivable A/c	Dr. Dr.
D.None of the above.

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