Can rediscount be applied to postdated checks?
Rediscounting can be applied to checks.
The rediscount calculation formula is as follows:
Rediscount Amount = (Nominal Value x Interest Rate x Number of Days) / (36,000 + (Interest Rate x Number of Days))
Example Calculation:
Check Maturity Date: 31.12.2024
Rediscount Calculation Date: 30.06.2024
Number of Days: 184 Days
Amount on the Check: 100,000 TL
Rediscount Rate: 50.75%
Rediscount Amount: 20,596.41 TL
Present Value: 79,403.59 TL
-Example of an Accounting Entry Dated 30 June 2024:
_______________ 30.06.2024 _______________
657 REDISCOUNT INTEREST EXPENSES 20,596.41 TL
122 NOTES RECEIVABLE REDISCOUNT 20,596.41 TL
_______________ 30.06.2024 _______________
-Reversal entry on 1 July 2024:
_______________ 01.07.2024 _______________
122 NOTES RECEIVABLE REDISCOUNT 20,596.41 TL
646 REDISCOUNT INTEREST INCOME 20,596.41 TL
_______________ 00.00.0000 _______________
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