banking and insurance

Happene Case 5: (10 Marks) FAB Oman started its operations in 1976 by opening its first branch in the Muttrah Business District. It aims to provide full banking services targeting the retail, Elite. Commercial and Wholesale market segments. Since its inception, the branch has facilitated business between Oman and the world whilst servicing customers with personalized products to meet their individual banking needs. FAB Oman currently operates a network of distribution channels and branches covering both residential and commercial areas You are provided with the ledger balances of FAB Oman as on 31 March 2018 and asked to prepare its final accounts and also asked to consider the following are the year-end adjustments: It was decided that the bank will provide 5% depreciation on Computers. The accountant informed that although the director's fees are shown as OMR 1,000, outstanding transfer fees of OMR 1,000 are yet to be collected: Bank earned the discount of OMR 1,400 during the year and rebate on bills discounted was OMR 250. In anticipation of the debt losses, it was decided by the directors of the bank to create a provision of OMR 500 for its doubtful debts Particulars Fixed Deposits Share Capital Current account Amount OMR Particulars 159,000 Cash at central Bank 80,000 Statutory Reserve 10,000 Discount on bills discounted Amount OMR 28,200 7,000 1.400 11 Page 4,800 9.600 16,200 4.000 35,000 400 200 Investments Money at call and short notice Borrowed from other banks Miscellaneous expenses Bills payable Loans and cash credits Commission and exchange paid Government securities Interest on balances with Central bank Investment Income Postage and stationery Advertisement 19,200 1,000 6,800 125,300 150 62,000 Unpaid dividends Interest on current account Furniture and fixtures Rent and rates General expenses Cash at other banks Interest on Overdrafts Staff salaries Interest on borrowings from other Inter-bank Transfer fees received Computers Directors fees 20,800 6,500 300 15,000 5,600 5,000 2,000 26,000 5.000 250 200 You are asked to prepare: a) Income statement for FAB Oman as on 31 March 2018 b) Balance Sheet with necessary notes as on 31 March 2018