Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000’ OMR)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000’ OMR)

 

 

PARTICULARS

OMR

Interest on Savings Account

6,000

Interest on Fixed Deposits

33,000

Interest on Loans

19,200

Rent and Rates

1,500

Interest on Current Account

4,500

Interest on Cash Credits

16,800

Discounts received

21,000

Commission Expenses

600

Commission Received

2,400

Director’s Fees

150

Salaries and Allowances

6,000

Interest on Overdrafts

18,000

Interest on borrowings from other banks

1,500

Legal Charges

90

Transfer Fees paid

1,200

Locker Rent

1,800

Other office expenses

120

Depreciation on Fixed Assets

6,000

Miscellaneous Expenses

1,200

 

 

 

Other Adjustments:

 

  1. Fair value of sale of investments were increased by: OMR 3,600
  2. Loss on exchange difference arising on transactions of foreign operations was: OMR 600
  3. Income tax expenses: OMR 9,000
  4. Impairment for loans: OMR 300
  5. Impairment for investments: OMR 2,700
  6. Rebate on bills discounted: OMR 1,800

 

From the above information Prepare Income Statement and based on the prepared Income Statement answer the following ‘6’ multiple choice questions (Do not upload Income Statement in moodle).

Interest earned during the year will be:
a.
OMR 73,200,000
b.
OMR 132,600,000
c.
OMR 127,200,000
d.
OMR 48,800,000
 
Non-interest incomes will be:
a.
OMR 2,800,000
b.
OMR 2,400,000
c.
OMR 4,400,000
d.
OMR 4,200,000
 
Total interest expended will be:
a.
OMR 50,400,000
b.
OMR 45,000,000
c.
OMR 55,000,000
d.
OMR 45,400,000
 
Total of non-interest expenses during the year was:
a.
OMR 9,660,000
b.
OMR 8,680,000
c.
OMR 16,860,000
d.
OMR 16,680,000
 
Net profit before tax will be:
a.
OMR 12,740,000
b.
OMR 14,540,000
c.
OMR 13,440,000
d.
OMR 12,540,000
 
Operating profit for the year will be:
a.
OMR 15,540,000
b.
OMR 10,360,000
c.
OMR 15,340,000
d.
OMR 13,540,000
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