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: Fair value of sale of investments were increased by: OMR 3,600 Loss on exchange difference arising on transactions of foreign operations was: OMR 600 Income tax expenses: OMR 9,000 Impairment for loans: OMR 300 Impairment for investments: OMR 2,700 Rebate on bills discounted: OMR 1,800 From the above information Prepare Income Statement and based on the prepared Income Statement answer the following ‘3’ multiple choice questions (Do not upload Income Statement in moodle). Interest earned during the year will be: a. OMR 73,200,000 b. OMR 127,200,000 c. OMR 48,800,000 d. OMR 132,600,000
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: Fair value of sale of investments were increased by: OMR 3,600 Loss on exchange difference arising on transactions of foreign operations was: OMR 600 Income tax expenses: OMR 9,000 Impairment for loans: OMR 300 Impairment for investments: OMR 2,700 Rebate on bills discounted: OMR 1,800 From the above information Prepare Income Statement and based on the prepared Income Statement answer the following ‘3’ multiple choice questions (Do not upload Income Statement in moodle). Interest earned during the year will be: a. OMR 73,200,000 b. OMR 127,200,000 c. OMR 48,800,000 d. OMR 132,600,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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:
Fair value of sale of investments were increased by: OMR 3,600
Loss on exchange difference arising on transactions of foreign operations was: OMR 600
Income tax expenses: OMR 9,000
Impairment for loans: OMR 300
Impairment for investments: OMR 2,700
Rebate on bills discounted: OMR 1,800
From the above information Prepare Income Statement and based on the prepared Income Statement answer the following ‘3’ multiple choice questions (Do not upload Income Statement in moodle).
Interest earned during the year will be:
a.
OMR 73,200,000
b.
OMR 127,200,000
c.
OMR 48,800,000
d.
OMR 132,600,000
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