Name of Bank

Comprehensive Income Statement

For Period Ended DD/MM/20XX (Adapted)
Notes OMR OMR OMR
Interest (& Discount) Income 13
Interest on Loans XXX
Interest on balances with the Central Bank XXX
Interest on other Inter-bank funds XXX
Interest on Investment Securities XXX
Discount on bills purchased xxxx
(-) Rebate on bills discounted (xx) XXX
Other Interest Income XXX
Total Interest Income XXX

Less: Interest Expense 15

Interest on Deposits (XXX)
Interest on borrowings from Central Bank (XXX)
Interest on borrowings from other Inter-bank (XXX)
Other Interest Expenses (XXX)
Total Interest Expenses (XXX)

Net Interest Income (Interest Margin) XXX

Non-Interest Income 14
Fees and commissions for non-interest based
XXX
services
Investment Income XXX
Other Operating Income XXX
Total non-interest income XXX

Less: Non-Interest Expenses 16

Fees and commissions for non-interest based
(XXX)
services
Depreciation (& Amortization) (XXX)
Other Operating expenses (XXX)
Total non-interest based expenses (XXX)

Net Non-Interest Income (Non-Interest

XXX
Margin)

1
Operating Profit
XXX
(Interest Margin + Non Interest Margin)

Less Provisions and contingencies

Provisions for possible credit losses
(XXX)
(Provision for loan impairments)
Provision for diminution in invests. Securities
(XXX)
(Impairment of available-for-sale investments)
Recoveries from provision for loan losses XXX
Total Net Provisions XXX

Net Profit Before Tax

XXX
(Net Profit After Provisions)
Taxation (XXX)

Net Profit After Tax XXX

Other Comprehensive Income:

Add / Less: Net changes in fair value of available-
for-sale investments (Increase then Add &
Decrease then Less)
XXX
Add/Deduct: Profit/Loss on Exchange differences
arising on translation of foreign operations. Etc.
(…Profit & Deduct Loss)
Net other comprehensive Income XXX

XXX

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 Preparation Balance Sheet - Form A
Balance Sheet as on ......................... (Adapted)
Amount
Particulars Notes (OMR)
Capital 1
Reserves and Surplus 2
Deposits 3
Borrowings 4
Other Liabilities 5
Total Liabilities XXXXX
Cash in Hand and with Central Bank 6
Balance with Other Banks and Money at Call & Short Notice
7
Investments 8
Advances 9
Fixed Assets 10
Other Assets 11
Total Assets XXXXX
Contingent Liabilities 12

Note 1 : Capital Amount

Equity Share Capital
Preference Share Capital
Less: - Calls in Arrears
Add: - Calls in Advance
Add: - Share Forfeiture
Total XXXX

Note 2: Reserves and Surplus Amount

Statutory Reserve
General Reserve
Capital Reserve
Share premium
Balance from profit and loss A/C
Total XXXX

3
Note 3 : Deposits Amount
Fixed Deposits
Saving Deposits
Current Account
Deposits from other banks
Total XXXX

Note 4: Borrowings
Borrowing from Central Bank of Oman
Borrowing from Other Banks
Borrowing in Oman or Outside Oman
Total XXXX

Note 5: Other Liabilities Amount

Bills Payable
Outstanding Expenses
Unpaid Dividend
Incomes received in Advance
Inter Office Adjustment (net)
Others (including provisions)
Total XXXX

Note 6: Cash in Hand and with Central Bank of Oman Amount

Cash in Hand
Cash at Bank
Balance with Central Bank of Oman
Total XXXX

Note 7: Balance with Other Banks and Money at Call and

Short Notice Amount

Balance with Other Banks

Money at Call and Short Notice (Short Term Loan given by Bank
to Customers
Total XXXX

4
Note 8: Investments Amount
Government Securities
Bonds
Mutual Funds
Equity Shares of Other Companies
Gold
Total XXXX

Note 9 : Advances Amount

Term Loan
Bank Overdraft
Cash Credit and Bill Discount
Total XXXX

Note 10. Fixed Assets Amount

Premises
Furniture and Fixtures
Equipment
Land and Building
Plant and Machinery
Motor Vehicles
Computers
Total XXXX

Note 11. Other Assets Amount

Prepaid Expenses
Tax Paid in Advance
Tax Deducted at Source
Non-Banking Asset
Inter Branch Adjustment
Accrued Incomes
Total XXXX

5
Note 12. Contingent Liabilities Amount
Bills Received for Collection
Acceptance, Endorsement and Guarantee
Liability for Bill Rediscounted
Disputed Liabilities
Income Tax under Appeal
Income Tax Deposits
Liability for Partly Paid Investments
Total XXXX

Note 13. Interest Earned Amount

Interest on Term Loan

Interest on Cash Credit
Interest on Bank Overdraft
Discount on Bill Discounted
Income on Investments
Interest Balance with Central Bank of Oman
Any Other Interest Income
Total XXXX

Note 14. Other Incomes Amount

Draft Making Charges
Commission, Exchange and Brokerage
Locker Rents, Dividends
Profit on Exchange Transactions
Transfer Fees and Registration Fees
Profit on Sale of Fixed Assets
Less: Loss on Sale of Fixed Assets
Profit on Sale of Investments
Less: Loss on Sale of Investments
Profit on Revaluation of Fixed Assets or
Investments and Miscellaneous Incomes
Total XXXX

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Note 15: Interest Expended Amount
Interest on Fixed Deposits
Interest on Current Deposits
Interest on Saving Deposits
Interest on Borrowings from Oman and Other
Banks
Interest on any Other Deposit
Total XXXX

Note 16: Operating Expenses Amount

Rent, Rates and Taxes, Insurance, Salary,

Director Fee, Management Fee,

Printing and Stationary, Audit Fee, Depreciation,

Provident Fund of Employees,

General Expenses, Law Charges, Advertisement

and Publicity, Repair and Maintenance, Sundry
Charges.
Total XXXX

Provision & Contingencies Amount

Bad Debts
Provision for Doubtful Debts
Provision for Tax
Provision for Contingencies
Provision for Depreciation
Other Provisions
Total XXXX

7
Exercises on Income Statements:

Exercise No. (1)

From the following information, you are required to calculate the total amount of interest
earned and the interest expended by the ACD Bank for the year 2020.

OMR
Interest on loans 518
Interest on cash credits 446
Discount on bills discounted 390
Interest on overdrafts 108
Interest on savings Bank 220
Interest on fixed deposits 550

Exercise No. (2)

From the following information, calculate interest expended and interest earned in the form
of notes and also find the net interest income earned/expended for ABC Bank for the period
ended 2020:

OMR
Interest on working capital loans 500
Interest on term loans 400
Interest on consumer loans 250
Interest on housing loans 250
Interest on savings account 400
Interest on fixed deposits 600
Interest on other term deposits 200
Interest on corporate loans 1200

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Exercise No. (3)
From the following g information, prepare an Income Statement of CFO Bank for the year ended 31st
December 2020.

OMR OMR
('000) ('000)
Interest on loans 518 Postage telegrams 2.8
Interest on cash credits 446 Sundry expenses 2
Discount on bills discounted 390 Advertisement 1.4
Interest on overdrafts 108 Director’s fees 6
Interest on savings bank 220 Printing & Stationery 0.4
Interest on fixed deposits 550 Law charges 1.8
Commission exchange and
brokerage 16.4 Payment to employees 108
Rent Taxes and lighting 36 Locker rent 0.7
Auditor’s fees 2.4 Transfer fees 1.4
Depreciation on bank’s assets 10

Additional information:
(a) Provide for bad debts OMR 58
(b) Rebate on bills discounted OMR 98

Exercise No. (4)

From the following information, prepare to notes to the accounts and income statement for the year
ended 31st Dec 2020 for the XYZ Bank

OMR OMR
('000) ('000)
Interest on loan 2,590 Interest on other deposits 680
Interest on fixed deposits 3,170 Postage 14
Rebate on bills discounted 490 Printing 29
Commission earned 82 Sundry charges 17
Payment to employees 540 Directors fees, allowances 30
Discount on Bills discounted 1,550 Auditors’ fees 12
Interest on cash credit 2,230
Rent, Taxes, lighting 180
Interest on overdrafts 1,540
Additional Information:
a) Provide for contingencies R.O. 10 b) Provide for doubtful debts R.O. 15

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Exercise No. (5):

From the following information, prepare an Income Statement for HSBC Oman for the year ended as
on 31st December 2020 (all Amounts are in 000’ OMR)

OMR
Interest on Loans 6,400
Interest on Fixed Deposits 11,000
Commission Received 800
Salaries and Allowances 2,000
Discount on Bills discounted 7,000
Interest on Cash Credits 5,600
Interest on Current A/Cs 1,500
Rent and Lighting 500
Interest on Overdrafts 6,000
Director’s Fees 50
Commission Expenses 200
Interest on Savings A/Cs 2,000
Other Office Expenses 40
Lockers Rent 600
Transfer Fees paid 400
Legal Charges 30
Sundry Expenses 400
Depreciation on Banks’ Properties 2,000
Interest on borrowings from Intra
Bank 500

Additional Information:

a) Rebate on bills discounted 600

b) Impairment for Investments 900
c) Impairment for Loans 100
d) Income Tax Expense 3,000
e) Loss on Exchange Difference arising on translations of foreign operations 200
f) Increase in fair value of available-for-sale-Investments 1,200

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Exercises on Statement of Financial Position (Balance Sheet)
Exercises (6):
The following are the balances stood in the books of Middle East Bank Limited for Year 2020.

OMR OMR
('000) ('000)
Fixed Deposits 42,600 Drafts Payable 70
Savings Deposits 19,000 Unclaimed Dividends 60
Rebate on Bills
Current Accounts 23,200 Discounted 50
Money at call and short notice 1,800 Short borrowings 4,750
Government Securities 9,000 Furniture and Fixture 1,164
Other Investments 16,000 Other Assets 336
Profit for the year 2,190 Share Capital 4,000
Premises (after depreciation) 2,950 Statutory Reserve 6,200
Cash in hand 380 Cash with Central Bank 10,000
Cash with other banks 6,000 Bills Discounted 3,800
Loans, Cash Credits, Overdrafts 51,000

You are required to prepare the Balance Sheet of the Bank as on 31st Dec.2020 by providing
an additional statutory reserve of OMR 310

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Exercise No. (7): From the following ledger balances of Nizwa Bank as on 31st Dec.2020,
prepare income statement and Balance Sheet
OMR OMR
('000) ('000)
Fixed Deposit 3,250 Share Capital 2,500
Savings Deposit 17,750 Statutory Reserves 1,500
Current Accounts 38,750 Profit (previous year) 100
Money at call and short notice 2,400 Bills Payable 4,000
Investments 15,500 Sundry Creditors 250
Interest accrued 1,000 General reserve 700
General Expenses 50 Borrowed from other banks 4,800
Dividend 250 Non-Banking assets 1,200
Cash in hand 750 Interest and Discount 3,250
Premises 6,500 Unclaimed Dividends 50
Cash at Central Bank 7,050 Loans, Overdrafts 35,000
Cash at Other Banks 5,200 Payment to Employees 400
Bills Discounted and
Deposits from other banks 1,000 Purchased 2,500
Rent, taxes 100

Additional Information:
a. Rebate on bills discounted to OMR 25
b. Allow 5% depreciation on Premises on cost.
c. Provide OMR 250 for provision for doubtful debts

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Exercise No. (8)

From the following particulars of AMN Bank as on 31st December 2020, prepare
Income statement and the Balance sheet

Particulars Debit Credit

Interest on deposits 50,000
Interest on loans 75,000
Share Capital 125,000
Deposits 200,000
Loans 150,000
Other assets 50,000
Salaries 20,000
Rent & Repairs 10,000
Loans against assets 50,000
Audit fees 5,000
Repairs 5,000
Salaries to Director 10,000
Furniture & Fixtures 50,000
Total 400,000 400,000

Adjustments:
 Provide for depreciation on furniture 20% and on other assets 10%
 Provide for a loss of credit 20% of loans
 an outstanding amount of salary of OMR 2000 yet to be paid
 Salaries to director amounting to OMR 4000 paid in advance.

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