Question
(a) The trial balance of bank Nizwa as on 31/12/18 showed the following balances Particulars OMR Interest and discount, 4,540,600 Rebate on bills discounted (1/1/2018)
(a) The trial balance of bank Nizwa as on 31/12/18 showed the following balances
Particulars | OMR |
Interest and discount, | 4,540,600 |
Rebate on bills discounted (1/1/2018) | 4,750 |
Bills discounted and purchased | 337,400 |
Unexpired discount is OMR 1,500 | |
Draft necessary adjusting entries, and ledger. Calculate the amount of interest and discount to be credited to profit and loss account and show how this item will appear in the balance sheet and in the final accounts of the bank.
(b) Oman United Insurance Corporation provides you with some of the data related to its life insurance policies:
Premium received during the year = OMR 49,000
Reinsurance premium paid = 15% of the total premium received this year
Bonus in reduction of premium = 1% of the total premium received this year
Outstanding premium at the start = OMR 8,750
Premium received in advance at the end = OMR 1,895
Required: You have been asked to calculate the amount of premium to be credited to revenue account this year.
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
