Interest earned during the year will be:a.OMR 73,200,000b.OMR 132,600,000c.OMR 127,200,000d.OMR 48,800,000Non-interest incomes will be:a.OMR 2,800,000b.OMR 2,400,000c.OMR 4,400,000d.OMR 4,200,000 Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000' OMR)PARTICULARSOMRInterest on Savings Account6,000Interest on Fixed Deposits33,000Interest on Loans19,200Rent and Rates1,500Interest on Current AccountInterest on Cash Credits4,50016,800Discounts received21,000Commission Expenses600Commission ReceivedDirector's FeesSalaries and AllowancesInterest on Overdrafts2,4001506,00018,000Interest on borrowings from other banks1,500Legal Charges90Transfer Fees paid1,200Locker Rent1,800lother office expenses120Depreciation on Fixed Assets6,000Miscellaneous Expenses1,200Other Adjustments:i. Fair value of sale of investments were increased by: OMR 3,600ii. Loss on exchange difference arising on transactions of foreign operations was: OMR 600iii. Income tax expenses: OMR 9,000iv. Impairment for loans: OMR 300v. Impairment for investments: OMR 2,700vi. Rebate on bills discounted: OMR 1,800

Non - Interest Income - It is type of bank's income which derives from the various fees charge to…

Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000' OMR) PARTICULARS OMR Interest on Savings Account 6,000 Interest on Fixed Deposits 33,000 Interest on Loans 19,200 Rent and Rates 1,500 Interest on Current Account Interest on Cash Credits 4,500 16,800 Discounts received 21,000 Commission Expenses Commission Received Director's Fees 600 2,400 150 Salaries and Allowances 6,000 Interest on Overdrafts 18,000 Interest on borrowings from other banks 1,500 Legal Charges 90 Transfer Fees paid 1,200 Locker Rent 1,800 other office expenses Depreciation on Fixed Assets Miscellaneous Expenses 120 6,000 1,200 Other Adjustments: i. Fair value of sale of investments were increased by: OMR 3,600 ii. Loss on exchange difference arising on transactions of foreign operations was: OMR 600 ili. Income tax expenses: OMR 9,000 iv. Impairment for loans: OMR 300 v. Impairment for investments: OMR 2,700 vi. Rebate on bills discounted: OMR 1,800

Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000' OMR) PARTICULARS OMR Interest on Savings Account 6,000 Interest on Fixed Deposits 33,000 Interest on Loans 19,200 Rent and Rates 1,500 Interest on Current Account Interest on Cash Credits 4,500 16,800 Discounts received 21,000 Commission Expenses Commission Received Director's Fees 600 2,400 150 Salaries and Allowances 6,000 Interest on Overdrafts 18,000 Interest on borrowings from other banks 1,500 Legal Charges 90 Transfer Fees paid 1,200 Locker Rent 1,800 other office expenses Depreciation on Fixed Assets Miscellaneous Expenses 120 6,000 1,200 Other Adjustments: i. Fair value of sale of investments were increased by: OMR 3,600 ii. Loss on exchange difference arising on transactions of foreign operations was: OMR 600 ili. Income tax expenses: OMR 9,000 iv. Impairment for loans: OMR 300 v. Impairment for investments: OMR 2,700 vi. Rebate on bills discounted: OMR 1,800

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
The bank reconciliation shows the following adjustments: Deposits in transit: $852 Notes receivable collected by bank: $1,000; interest: $20 Outstanding checks: $569 Error by bank: $300 Bank charges: $30 Prepare the correcting journal entry.
Using the following information, prepare a bank reconciliation. Bank balance: $7,651 Book balance: $10,595 Deposits in transit: $2,588 Outstanding checks: $489 Interest income: $121 NSF check: $966
The bank reconciliation shows the following adjustments: Deposits in transit: $1,234 Outstanding checks: $558 Bank service charges: $50 NSF checks: $250 Prepare the correcting journal entry.