40 1. From the following information relating to Bank Muscat, prepare Income Statement for the year ended 31 Marchr 2017. Show the calculations separately (PREPARED SHEDULES) RO Interest on loans 15000 Interest on cash credits 9160 Auditor's fees Interest on overdrafts 1250 Interest on fixed deposit 2050 Interest on savings account 2100 Commission exchange and brokerage 165 Rent Taxes and lighting 360 Discount on bills discounted 5660 Depreciation on bank's assets 125 Interest on balances with Central bank of Oman 1000 Postage telegrams Sundry expenses 120 Advertisement and publicity Director's fecs 350 Printing & Stationery 65 Law charges Payment to employees 860 Locker rent 40 Transfer fees Interest on recurring deposits 130 55 30 52 35 Additional information: (a) Provide for Contingencies RO28 (b) Rebate on bills discounted RO 55 2.On 1st Feb 2015 a bill of OMR 3,000,000 is discounted with a bank @ 12% per annum. The due date of the bill is 30th Dec 2015. Pass necessary journal entries in the books of the bank assuming that the bill is collected on the due date. Accounting year closes on 31st March every year