CLASS ACTIVITY: SECTION $4$

Instructions:

Read the question carefully.

Time limit is $1$ hour $25$ minutes.

Submit the scan copy of handwritten notes, word file or excel sheet on the link provided

Submission will not be accepted once the link closes.

Only one submission is allowed.

Question:

You are provided with the ledger balances of Dhofar Bank as on ${31}^{st}$ March $2022$ and asked to prepare its final accounts.

$\backslash$table$[[$Particulars$,$Amount,Particulars,Amount$],[$Sundry charges,$18,750,$Interest on fixed account,$120,000],[$Bills discounted and purchased,$57,000,$Insurance,$1,500],[$Interest on overdraft,$90,000,$Fixed deposits,$75,000],[$Saving Deposits,$30,000,$Premises,$48,000],[$Cash in hand,$7,500,$Discount received,$5,700],[$Money at call and short notice,$31,500,$Interest on saving deposits,$3,150],[,,,],[$Printing and postage,$300,$Advertisement,$750],[$Transfer fees,$1,500,$Borrowings from other banks,$30,000],[$Equity Share Capital,$375,000,$Investment,$150,000],[$Share premium,$75,000,$Bank Vehicles,$45,000],[$Commission and exchange,$37,500,$Interest on Cash credit,$135,000],[$Home loans and cash credits,$60,000,$Statutory reserve,$10,500],[$Government securities$,153,000,$Rent and taxes,$15,000],[$Miscellaneous expenses,$24,000,$Cash at other banks,$75,000],[$Salaries paid,$45,000,$Directors' fees,$750]]$

Also consider the following year$-$end adjustments.

a$)$ Outstanding commission was OMR $4,500.$

b$)$ It was decided that the bank will provide $10\%$ depreciation on Bank vehicles.

c$)$ Rebate on bills discounted were OMR $3,000.$

d$)$ The accountant informed that although the salary expenses are shown as OMR $45,000,$ salaries of OMR $7,500$ are yet to be paid.

e$)$ In anticipation of the debt losses it was decided by the directors of the bank to create a provision for loss of credit is $5\%$ on Investment.

Required:

From the given information.

Prepare Income statement.

Prepare Balance Sheet

Compute Profitability and efficiency ratios