query on banking companies sum

We are adding tax provision, Provn. for doubtful debt and Loss on sale of investment back, as they do not affect the interest and discount a/c. They have incorrectly been recorder, by adding them back we are correcting the interest and discount a/c, Also, Rebate on bills discounted is an item of interest and discount account only, it has to be credited to interest and discount a/c

ruchi lahoti

CA Inter

★ 27K+

19-May-20 23:00

If Sir would have also solved and explained Illustration 2 and 4 (pg 8.108) I would have had a much clearer concept clarity. Like for example point (c) in other information of Illus 4 I am having problems to comprehend.

Thread Starter

Kumarjit Dey

CA Inter

★ 4K+

19-May-20 00:00

In the additional information given below tax provision, provision for doubtful debts,loss on sale of investments are already adjusted with interest and discount. In order to get original interest and discount amount we have added it back

anamika vardhan

CA Inter

★ 1K+

19-May-20 11:21

Why are we adding them back? Why is Rebate not added back?

Thread Starter

Kumarjit Dey

CA Inter

★ 4K+

19-May-20 11:33

Thank you very much.

Thread Starter

Kumarjit Dey

CA Inter

★ 4K+

19-May-20 23:17