Case 3: (10 Marks) Bank Muscat is the leading financial institution in Oman with a strong presence in corporate banking, personal banking, investment banking Islamic banking, treasury, private banking, and asset management. The bank has the largest network of branches and electronic channels in Oman. You are provided with the ledger balances of Bank Muscat as on 31st March 2019 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 10% depreciation on Furniture. The accountant informed that although ledger balances of the salary expenses are shown as OMR 30,000, salaries of OMR 5,000 yet to be paid; and also commission outstanding is amounting to OMR 3,000. In anticipation of the debt losses, it was decided by the directors of the bank to create a provision of 5% on Investment. Bank purchased the bills for OMR 38,000 during the year and rebate on bills discounted was amounted to OMR 2,000. Particulars Equity Share Capital Preference share Capital Commission and exchange Overdraft and cash credit Government securities Management expenses Salaries paid Auditor fees Bills discounted and purchased Interest on overdraft Current Deposits Cash in hand Money at call and short notice Stationery and forms Transfer fees Amount OMR 250,000 50,000 19,000 40,000 102,000 16,000 30,000 12,500 38,000 Particulars Investment Furniture Interest on Cash credit Statutory reserve Rent and taxes Cash at other banks Loss on sale of investment Interest on fixed account Law charges Amount OMR 100,000 30,000 90,000 7,000 10,000 50,000 500 80,000 1,000 60,000 20,000 5,000 50,000 32.000 3,800 Fixed deposits Office machinery Discount received Interest on current deposits Advertisement Borrowings from other banks 21,000 200 1,000 2.100 500 20.000 You are asked to prepare: a) Income statement for Bank Muscat as on 314 March 2019 b) Balance Sheet with necessary notes as on 31st March 2019 (5 Marks) (5 Marks) 7 Page