Second Question: The Following transaction incurred in the bills section of main branch of Petra bank 1st of April 2006 (15 Marks) 1

Second Question: The Following transaction incurred in the bills section of main branch of Petra bank 1st of April 2006 (15 Marks) 1. JD 40000 bills for collection (1.5% Commission) 2. JD 20000 Bills of the above has been sent for collection by branches 3. JD 30000 Bills collected by cash 4. JD 1500 Bills refused to pay the bank resent them to customer after deducting JD 60 as Postal Expense. 5. JD 1200 Bills collected by branches. 6. JD 60000 Bills discounted, due date 1 of October, (Interest 20%, JD 160 Commission) 7. JD 5000 Bills discounted collected in cash by bank on 1st of October.. 8. JD 3000 Bills sent to central bank for rediscount 1" of July (0% interest rate, commission 0) 9. JD 2350 Bills used as collateral bills, JD 1320 Advances by collateral bills (commission JD 20) 10.1of October the bank received the bills from the central bank in number 8 transaction Required: Record entries in the journal of Petra bank

Third Question: In your own words, describe why the central bank is called the bank of banks as we explained in the lectures. (4 Marks)