(b) Prepare the profit and loss account of Amjaad bank for the year ended 31/12/2017 from the following information. (8 marks)

Particulars

OMR

Interest on loans

259,000

Interest on cash credits

195,000

Interest on Fixed deposits

275,000

Interest on current accounts

42,000

Interest on government securities

54,000

Interest on inter-bank borrowings

68,000

Discount on bills discounted

195,000

Commission and exchange

8,000

Miscellaneous receipts

7,000

Rebate on bills discounted (1/1/2017)

49,000

Establishment expenses

54,000

Rent and taxes

18,000

Directors and auditors fees

6,000

Postage and telegrams

4,000

Printing and advertisement

3,000

General expenses

2,000

Bad debts

12,000

Profit and loss account (cr) (1/1/2017)

30,000

Insurance

8,000

Salaries

32,000

Contribution to provident fund

20,000

Provide OMR 8,000 for depreciation, OMR 20,000 for bad debts reserve and OMR 15,000 for taxation. An interim dividend of OMR 12,000 was paid. Rebate on bills discounted at the year end was OMR 10,000.