Rebate on bills discounted.

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This discussion clarifies the accounting treatment of rebates on discounted bills. Initially debated as earned but unreceived income (an asset), the consensus shifts to recognising it as income received in advance, thus a liability. The correct journal entry involves debiting 'Discount on Bills Account' and crediting 'Rebate on Discounted Bills Account' to reflect this advance income.

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Student
115 Points Posted on 06 February 2023
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On 06 February 2023 at 18:41
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GST Practitioner & Accounts
15136 Points Posted on 06 February 2023
Income received in Advance is always Liability.
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On 06 February 2023 at 20:33

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