ABC company has been trading for a number of years

manufacturing domestic appliances. Its trial balance for the year ending

31^st December 2019 is noted below

	Debit	Credit
Revenue		14,000,000
Opening inventory	1400,000
Purchases	4200,000
Manufacturing Wages	2600,000
Selling and distribution cost	5800,000
Administration cost	500,000
Plant and Machinery at cost	6,500,000
Land at cost	2,000,000
Office equipments at cost	1,000,000
Accumulated depreciation on plant and machinery		1,500,000
Accumulated depreciation on Office equipment		500,000
Retained profits 1-1-2019		4,000,000
Ordinary share capital		5,000,000
Trade receivables	1,000,000

Additional information

1. Closing inventory at 31^st December 2019 was OMR 900,000

2. Depreciation will be provided as follows

a) On Plant and Machinery @ 30% reducing balance method

b) On office equipment @ 15% straight line method

3. Both the depreciation will be charged into administration expenses.

4. During the year the company issued 5,000,000 redeemable preference shares of OMR 1 each.

1)

The value of Property, Plant and Equipment to be shown under Non-Current Assets in the statement of financial position is

a.

OMR 3,850,000

b.

OMR 5,850,000

c.

OMR 5,925,000

d.

OMR 3,925,000

2)

What will be the total administration cost to be shown on the Income Statement for the year ended 31st December 2019?

a.

OMR 2,100,000

b.

OMR 2,150,000

c.

OMR 2,250,000

d.

OMR 2,700,000

3)

What will be the cost of sales to be shown on the Income statement of ABC Company for the year ended 31st December 2019?

a.

OMR 4,700,000

b.

OMR 7,300,000

c.

OMR 6,700,000

d.

OMR 8,200,000

4)

What will be the share capital balance to be shown under the equity section in the statement of financial position on 31st December 2019?

a.

OMR 0

b.

OMR 10,000,000

c.

OMR 5,000,000

d.

OMR 14,000,000

5)

The opening balance of retained earnings of OMR 4,000,000 will be shown under

a.

Deducted from total comprehensive income

b.

Statement of changes in owners equity

c.

Current liability in the statement of financial position

d.

Non-Current liability in the statement of financial position