Following is the trial balance of Bank of Baroda for the year ended 31st December 2019 (Amounts are in 000’ OMR) Particulars Debit OMR Credit OMR Furniture & Fixtures 37.5 Salaries to Director 7.5 Repairs 3.75 Audit fees 3.75 Loans against assets 37.5 Rent & Repairs 7.5 Salaries 15 Other assets 37.5 Loans 112.5 Deposits 150 Interest on loans 56.25 Interest on deposits 37.5 Share Capital 93.75 Total 300 300 Adjustments: i. Provide for depreciation on furniture & fixtures 20% and on other assets 10% ii. Provide for a loss of credit 20% of loans. iii. An outstanding amount of salary of OMR 1.5 (Amount are in 000’ OMR) yet to be paid. iv. Salaries to director amounting to OMR 3 (Amount are in 000’ OMR) paid in advance. From the above information Prepare Income Statement and Statement of Financial Position. Based on the prepared Statements answer the following ‘6’ multiple choice questions (Do not upload Income Statement and Statement of Financial Position in moodle). Identify from the prepared statements which one of the sentence is correct? a. Loss of credit of OMR 22,500 is deducted in non-interest expenses and added to other assets b. Loss of credit of OMR 22,500 is deducted from other comprehensive income and added to advances c. Loss of credit of OMR 22,500 is added in non-interest expenses and deducted from advances d. Loss of credit of OMR 22,500 is added in interest expenses and deducted from loan against assets Identify from the calculated value, which one of the following statement is correct: a. Deficit of OMR 64,500 transferred to asset side of the Statement of Financial Position b. Surplus of OMR 102,000 transferred to liability side of the Statement of Financial Position c. Surplus of OMR 64,500 transferred to asset side of the Statement of Financial Position d. Deficit of OMR 51,000 transferred to asset side of the Statement of Financial Position Total of both credit side and asset side of the Statement of Financial Position will be: a. OMR 204,750 b. OMR 247,950 c. OMR 245,250 d. OMR 234,450 Total value of advances after adjustments will be: a. OMR 145,500 b. OMR 117,000 c. OMR 115,500 d. OMR 130,500 Total non-interest expenses of OMR 69,750 of a bank will be recorded under: a. Note: 15 b. Note: 14 c. Note: 13 d. Note: 16 Outstanding salary of OMR 1,500 will be: a. Added with salaries in income statement and recorded under liability side of the statement of financial position b. Deducted with salaries in income statement and recorded under asset side of the statement of financial position c. Deducted with interest income in income statement and recorded under asset side of the statement of financial position d. Added with interest expenses in income statement and recorded under asset side of the statement of financial position

Following is the trial balance of Bank of Baroda for the year ended 31st December 2019 (Amounts are in 000’ OMR) Particulars Debit OMR Credit OMR Furniture & Fixtures 37.5 Salaries to Director 7.5 Repairs 3.75 Audit fees 3.75 Loans against assets 37.5 Rent & Repairs 7.5 Salaries 15 Other assets 37.5 Loans 112.5 Deposits 150 Interest on loans 56.25 Interest on deposits 37.5 Share Capital 93.75 Total 300 300 Adjustments: i. Provide for depreciation on furniture & fixtures 20% and on other assets 10% ii. Provide for a loss of credit 20% of loans. iii. An outstanding amount of salary of OMR 1.5 (Amount are in 000’ OMR) yet to be paid. iv. Salaries to director amounting to OMR 3 (Amount are in 000’ OMR) paid in advance. From the above information Prepare Income Statement and Statement of Financial Position. Based on the prepared Statements answer the following ‘6’ multiple choice questions (Do not upload Income Statement and Statement of Financial Position in moodle). Identify from the prepared statements which one of the sentence is correct? a. Loss of credit of OMR 22,500 is deducted in non-interest expenses and added to other assets b. Loss of credit of OMR 22,500 is deducted from other comprehensive income and added to advances c. Loss of credit of OMR 22,500 is added in non-interest expenses and deducted from advances d. Loss of credit of OMR 22,500 is added in interest expenses and deducted from loan against assets Identify from the calculated value, which one of the following statement is correct: a. Deficit of OMR 64,500 transferred to asset side of the Statement of Financial Position b. Surplus of OMR 102,000 transferred to liability side of the Statement of Financial Position c. Surplus of OMR 64,500 transferred to asset side of the Statement of Financial Position d. Deficit of OMR 51,000 transferred to asset side of the Statement of Financial Position Total of both credit side and asset side of the Statement of Financial Position will be: a. OMR 204,750 b. OMR 247,950 c. OMR 245,250 d. OMR 234,450 Total value of advances after adjustments will be: a. OMR 145,500 b. OMR 117,000 c. OMR 115,500 d. OMR 130,500 Total non-interest expenses of OMR 69,750 of a bank will be recorded under: a. Note: 15 b. Note: 14 c. Note: 13 d. Note: 16 Outstanding salary of OMR 1,500 will be: a. Added with salaries in income statement and recorded under liability side of the statement of financial position b. Deducted with salaries in income statement and recorded under asset side of the statement of financial position c. Deducted with interest income in income statement and recorded under asset side of the statement of financial position d. Added with interest expenses in income statement and recorded under asset side of the statement of financial position

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter11: Current Liabilities And Payroll

Section: Chapter Questions

Problem 3CPP

See similar textbooks

Related questions

Question

Following is the trial balance of Bank of Baroda for the year ended 31st December 2019 (Amounts are in 000’ OMR)

Particulars	Debit OMR	Credit OMR
Furniture & Fixtures	37.5
Salaries to Director	7.5
Repairs	3.75
Audit fees	3.75
Loans against assets	37.5
Rent & Repairs	7.5
Salaries	15
Other assets	37.5
Loans	112.5
Deposits		150
Interest on loans		56.25
Interest on deposits	37.5
Share Capital		93.75
Total	300	300

Adjustments:

i. Provide for depreciation on furniture & fixtures 20% and on other assets 10%

ii. Provide for a loss of credit 20% of loans.

iii. An outstanding amount of salary of OMR 1.5 (Amount are in 000’ OMR) yet to be paid.

iv. Salaries to director amounting to OMR 3 (Amount are in 000’ OMR) paid in advance.

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

Identify from the prepared statements which one of the sentence is correct?

Loss of credit of OMR 22,500 is deducted in non-interest expenses and added to other assets

Loss of credit of OMR 22,500 is deducted from other comprehensive income and added to advances

Loss of credit of OMR 22,500 is added in non-interest expenses and deducted from advances

Loss of credit of OMR 22,500 is added in interest expenses and deducted from loan against assets

Identify from the calculated value, which one of the following statement is correct:

Deficit of OMR 64,500 transferred to asset side of the Statement of Financial Position

Surplus of OMR 102,000 transferred to liability side of the Statement of Financial Position

Surplus of OMR 64,500 transferred to asset side of the Statement of Financial Position

Deficit of OMR 51,000 transferred to asset side of the Statement of Financial Position

Total of both credit side and asset side of the Statement of Financial Position will be:

OMR 204,750

OMR 247,950

OMR 245,250

OMR 234,450

Total value of advances after adjustments will be:

OMR 145,500

OMR 117,000

OMR 115,500

OMR 130,500

Total non-interest expenses of OMR 69,750 of a bank will be recorded under:

Note: 15

Note: 14

Note: 13

Note: 16

Outstanding salary of OMR 1,500 will be:

Added with salaries in income statement and recorded under liability side of the statement of financial position

Deducted with salaries in income statement and recorded under asset side of the statement of financial position

Deducted with interest income in income statement and recorded under asset side of the statement of financial position

Added with interest expenses in income statement and recorded under asset side of the statement of financial position

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.