Model: Rebate on bills discounted The trial balance of BC Bank Ltd. as on 31 March 2011 shows the following balances:

Rs.

Interest and Discount

37,27,170

Rebate on Bills Discounted (1 April 2010)

7,150

Bills Discounted and Purchased

2,27,500

The unexpired discount as on 31 March 2011 is estimated to be Rs.24,125. Draft necessary adjusting entries and calculate the amount of interest and discount to be credited to P & L A/c.