In: Accounting
B2
(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.
.( 3 marks)