Oman arab bank collect bills for encashment on behalf of its customers. It is a part of its secondary functions. During the year 2018 it received bills for collection amounting to OMR18,000. The balance on bills for collection on 31/12/2017 amounted to OMR 2,000. It returned the dishonoured bills to its customers amounting to OMR 500.

Bills collected during the year amounted to OMR 25,000 Record these transactions in the journal and prepare the ledger for the same. (5 marks)

(b) Mr. John is doing export business in Oman. He needs money to manage his working capital and for expanding his business. So, what kind of loan do you recommend for both the situation explain them in your own words. (2.5 marks)

He is more concerned about his goods that is being transported by sea and the health of himself and his employees. So, what type of insurance policies should he buy for his goods, his employees health and his own health. Explain them in your own words. (2.5 marks)