9 Page 10 of 12 Case 4: (10 Marks) Salim has been dreaming about building his own house after getting employed. He has been employed in a small private company for the last 2 years and earning a salary of OMR 395 per month. He wants to now build his dream house on a plot that he has got in Al Ansab. He has approached an engineering consultant for building this house, who has given him an estimation for OMR 75.000 for this house. Salim has got savings of OMR 10,000 in his bank account and has no other income other than his salary. Salim has approached for your guidance on the most suitable option to raise the needed finance for building this house. Although there are various housing loan schemes from different banks, he is keener on getting a loan from Oman Housing Bank You are required to give more information to Salim on the following a) Why Oman Housing Bank is more suitable for Salim's financing needs? How is this bank different from other commercial banks in its operations? (200 words minimum/5 Marks) What is the maximum amount Salim can get from Oman Housing Bank and how much maximum time will he get to repay this loan? What will be the rate of interest per annum? (50 words minimum/2 Marks) c) Does Salim need a guarantor for this loan? How the bank does secures its loans so that it does not lose money if someone is unable to pay back? (150 words minimum/ 3 Marks) 10 Page Case 5: (10 Marks) In a rapidly changing Omani Banking industry, with far more players and competition than ever before, consumers are entitled to expect benchmark service and protection from whichever business they deal in the banking industry. Like any major full-service bank Ahlibank understands that faster, casier bankincent the way you run your business and life Worthir hann 11:20 Back Group D a) Calculate the rebate on bills discounted for the above bills. b) Show the balance of Discount transferred to income statement in the books of OAB bank (1 Mark) Case Study: 2 PART-B (5 Marks) Mr. Khalid is a local experter in Oman and experts handicrafts to various countries. During his sales last year he exported goods to Qatar, UAE, Egypt, and Saudi Arabia. Ms. Fatma is an importer from UAE and very fond of handicrafts from Oman, Khalid is flexible in his transactions with its customers and provides them with both the options le cash and credit. On 1 February 2020. Khalid exported goods to Fatma for OMR 52,000. Fatma agreed payment terms with him and it was decided that she will make 25% in cash and remaining would be paid after 180 days and later to which Khalid drew a 90 days for OMR $2,000 Fatma received the bill and returned it unaccepted. As the ball was unaccepted, on 20 February Khalid drew a new bill for the remaining amount on Fatma, which was accepted. On 1 April Khalid required funds, he tried to arrange through various sources however nothing worked in his favor, and on April ber decided to get the bill discounted with Oman Arab Bank 6% pa being its corporate customer. Bank purchased the bill of exchange from Khalid and gave him the discounted amount Due to COVID-19, UAE was in complete lockdown hence when the bill was about to mature she expressed her inability to meet the payments. Consequently the bill was dishonored Assume that the bank prepares its financial statements at the end of the year 28 en 31 December You are required to a) Comment why Khalid has to draw the second bell on Fatma and explain the reasons for bills getting unaccepted (150 words minimum/2 Marks) ) Discuss the process of discounting bills from the acceptance until dishonored with all the necessary calculations (100 words minimum/ 1.5 Marks) c) Givejournal entries in the books of bankes assuming the bill is met at maturity (1.5 Marks) 7 Page Case 3: Part (5 Marks) National Life & General Insurance Company is one of the leading insurance companies in the Sultanate of Oman and always on the lookout for talented, committed and qualified people who are driven to achieve profitable growth for the company as well as motivated to progress in their career. You are a fresh accounting graduate and joined the company, as a part of your training manager of the company asked you to join as an assistant to the As trainee actuaries explained to you that the Revenue account or Balance sheet of a life 11:28 (Back Group D Case 1: (10 Marks) Nationalities General Insurance Company has been providing financial security and peace of mind to its satisfied customers with a comprehensive range of ile & General Insurance Products with a Good (B++) financial strength rating from AM Best AM Besancial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligation. The rating is based comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile Its ability to focus on local needs and deliver solutions appropriate to this need has male NLGIC the Sultanate's market leader in the Life Insurance Industry and is also setting its standards in General Insurance Industry You are appointed as statistical General Insurance Company required to prepare the final accounts for the company The following lediger laces were tracted from the best the National de ser Insurance Company SADG 31 December 2019 Am Particulars OMR Particulars OMR Boste policyholders 37.500 Surrender S. Salaries 75.00 Macellaneous spas Consideration for annuites 383500 Premiums less re-insurance $2.500 by die 28.750 Ant Leans to the insurance 18.750 Interest and diedad Ad 39500 Story Reve 149 Share Capital 375.000 Machinery and wides Luke niture Benin reduction of 210.000 Dpit at han You are provided with additional information about the company which has been adjusted by the previous accountant Claims have been recorded in Indger bu outstanding duims at the end of the period 31st December 2009 hest biddin which amounts OMR 40,000, and outstanding premium penes were OMR 15.000. The company provided additional depreciation en machinery and vehicles amount 7.500 received in advance OMR 15.000. It was the penis paid in and were You are required to prepare a) Revenue account for National Life & General Insurance company and determine the dening Life Asurance balance at the end of the year b) Prepare Balance Sheet me 31 December 2009 ter making all the years (3 Martes Nutical Life & General Insurance Company wants to offer house insurance Services Quriyet where we have received 1800 policies for me. It is expected that average 10% of the houses may meet with an accident in a year. The com the loss stered by the owner of each house is taken to be R.SO Calculate the premium to be charged for insurance to the how Marke 9 Page 10 of 12 Case 4: (10 Marks) Salim has been dreaming about building his own house after getting employed. He has been employed in a small private company for the last 2 years and earning a salary of OMR 395 per month. He wants to now build his dream house on a plot that he has got in Al Ansab. He has approached an engineering consultant for building this house, who has given him an estimation for OMR 75.000 for this house. Salim has got savings of OMR 10,000 in his bank account and has no other income other than his salary. Salim has approached for your guidance on the most suitable option to raise the needed finance for building this house. Although there are various housing loan schemes from different banks, he is keener on getting a loan from Oman Housing Bank You are required to give more information to Salim on the following a) Why Oman Housing Bank is more suitable for Salim's financing needs? How is this bank different from other commercial banks in its operations? (200 words minimum/5 Marks) What is the maximum amount Salim can get from Oman Housing Bank and how much maximum time will he get to repay this loan? What will be the rate of interest per annum? (50 words minimum/2 Marks) c) Does Salim need a guarantor for this loan? How the bank does secures its loans so that it does not lose money if someone is unable to pay back? (150 words minimum/ 3 Marks) 10 Page Case 5: (10 Marks) In a rapidly changing Omani Banking industry, with far more players and competition than ever before, consumers are entitled to expect benchmark service and protection from whichever business they deal in the banking industry. Like any major full-service bank Ahlibank understands that faster, casier bankincent the way you run your business and life Worthir hann 11:20 Back Group D a) Calculate the rebate on bills discounted for the above bills. b) Show the balance of Discount transferred to income statement in the books of OAB bank (1 Mark) Case Study: 2 PART-B (5 Marks) Mr. Khalid is a local experter in Oman and experts handicrafts to various countries. During his sales last year he exported goods to Qatar, UAE, Egypt, and Saudi Arabia. Ms. Fatma is an importer from UAE and very fond of handicrafts from Oman, Khalid is flexible in his transactions with its customers and provides them with both the options le cash and credit. On 1 February 2020. Khalid exported goods to Fatma for OMR 52,000. Fatma agreed payment terms with him and it was decided that she will make 25% in cash and remaining would be paid after 180 days and later to which Khalid drew a 90 days for OMR $2,000 Fatma received the bill and returned it unaccepted. As the ball was unaccepted, on 20 February Khalid drew a new bill for the remaining amount on Fatma, which was accepted. On 1 April Khalid required funds, he tried to arrange through various sources however nothing worked in his favor, and on April ber decided to get the bill discounted with Oman Arab Bank 6% pa being its corporate customer. Bank purchased the bill of exchange from Khalid and gave him the discounted amount Due to COVID-19, UAE was in complete lockdown hence when the bill was about to mature she expressed her inability to meet the payments. Consequently the bill was dishonored Assume that the bank prepares its financial statements at the end of the year 28 en 31 December You are required to a) Comment why Khalid has to draw the second bell on Fatma and explain the reasons for bills getting unaccepted (150 words minimum/2 Marks) ) Discuss the process of discounting bills from the acceptance until dishonored with all the necessary calculations (100 words minimum/ 1.5 Marks) c) Givejournal entries in the books of bankes assuming the bill is met at maturity (1.5 Marks) 7 Page Case 3: Part (5 Marks) National Life & General Insurance Company is one of the leading insurance companies in the Sultanate of Oman and always on the lookout for talented, committed and qualified people who are driven to achieve profitable growth for the company as well as motivated to progress in their career. You are a fresh accounting graduate and joined the company, as a part of your training manager of the company asked you to join as an assistant to the As trainee actuaries explained to you that the Revenue account or Balance sheet of a life 11:28 (Back Group D Case 1: (10 Marks) Nationalities General Insurance Company has been providing financial security and peace of mind to its satisfied customers with a comprehensive range of ile & General Insurance Products with a Good (B++) financial strength rating from AM Best AM Besancial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligation. The rating is based comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile Its ability to focus on local needs and deliver solutions appropriate to this need has male NLGIC the Sultanate's market leader in the Life Insurance Industry and is also setting its standards in General Insurance Industry You are appointed as statistical General Insurance Company required to prepare the final accounts for the company The following lediger laces were tracted from the best the National de ser Insurance Company SADG 31 December 2019 Am Particulars OMR Particulars OMR Boste policyholders 37.500 Surrender S. Salaries 75.00 Macellaneous spas Consideration for annuites 383500 Premiums less re-insurance $2.500 by die 28.750 Ant Leans to the insurance 18.750 Interest and diedad Ad 39500 Story Reve 149 Share Capital 375.000 Machinery and wides Luke niture Benin reduction of 210.000 Dpit at han You are provided with additional information about the company which has been adjusted by the previous accountant Claims have been recorded in Indger bu outstanding duims at the end of the period 31st December 2009 hest biddin which amounts OMR 40,000, and outstanding premium penes were OMR 15.000. The company provided additional depreciation en machinery and vehicles amount 7.500 received in advance OMR 15.000. It was the penis paid in and were You are required to prepare a) Revenue account for National Life & General Insurance company and determine the dening Life Asurance balance at the end of the year b) Prepare Balance Sheet me 31 December 2009 ter making all the years (3 Martes Nutical Life & General Insurance Company wants to offer house insurance Services Quriyet where we have received 1800 policies for me. It is expected that average 10% of the houses may meet with an accident in a year. The com the loss stered by the owner of each house is taken to be R.SO Calculate the premium to be charged for insurance to the how Marke