Reference no: EM132530664

Question 1: In the beginning of 2017, Ms. Maryam Al Rawabi and Ms. Fatma Al Hinai started a restaurant in Muscat. They decided to invest 5000 OMR and 6000 OMR as a capital and decided to share the profit or loss in the ratio of capital they have invested. First year restaurant incurred a loss of 2200 OMR , second year they made a profit of 1650 OMR and third year again they made a profit of 1100 OMR.
a) What is the ratio of sharing profit or loss between Ms. Maryam and Ms. Fatma?
b) How will you distribute the first year loss between Maryam and Fatma?
c) After 03 years, Ms Maryam and Ms. Fatma are in profit or loss. Discuss with reasons
d) After 03 years of business, do you think they should continue with the business? Give reasons to your answer

Question 2: A research was conducted with 4272 students to understand their brand preference of mobile phone. 2.5/12 of students preferred iPhone, 4.5/12 preferred Samsung, 1.5/12 preferred Huawei, 1/12 of them preferred Sony and the rest of the students preferred other brand of mobiles.

You are required to identify:
a) The number of students who preferred iPhone.
b) The number of students who preferred Samsung.
c) The number of students who preferred Huawei.
d) The number of students who preferred other brands are less than number of students who preferred iPhone. Give reason to your answer
e) More number of students have preferred Samsung than iPhone. Critically discuss.

Question 3: Oasis car showroom is a dealer of Toyota cars. Mr. Issa is interested in buying the Toyota car and hence he visited the showroom. Mr. Abdul, sales manager at Oasis car showroom said that selling price of the car is 7500 OMR and customer needs to pay additional VAT at the rate of 12% . After discussion with Mr. Abdul, Mr. Issa came to know that Oasis car showroom has paid VAT of 720 OMR to the Toyota motors.
a) How much price inclusive of tax paid by the Oasis car showroom to buy the car?
b) How much Mr. Issa needs to pay to buy the car (including VAT)?
c) From the Government perspective, discuss the importance of VAT.

Question 4: Mr. Mahmood Al Abri works with Oman chips company in the production department and Mr. Abdul Al Hinai works in a accounting department. Both are paid 03 OMR per hour and both of them are eligible for overtime (time-and-a-half pay). Both are supposed to work minimum 8 hours per day and 40 hours per week. As per the employment contract If they work less than 8 hrs on any day or less than 40 hrs per week, they will be paid 02 OMR per hour for that week.

Last month Mr. Mahmood worked for 42 hrs, 35 hrs, 41 hrs and 32 hrs per week while Mr. Abdul worked for 34 hrs, 32 hrs, 31 hrs and 35 hrs per week.

a) How much gross pay Mr. Mahmood and Mr. Abdul would receive for the last month?
b) Overtime is beneficial for company as well as employee. Critically analyze
c) Why the overtime rate is always more than regular pay? Discuss with reasons

Question 5: Mr. Ahmed and Mr. Mohammed are working in same company and always help each other financially in case of need and emergency. Mr. Ahmed borrowed a sum of OMR 1,200 and paid back to Mohammed an amount of OMR 1536 after two years. Later Mr. Mohammed also borrowed a sum of OMR 1,500 and paid back to Ahmed an amount of OMR 1,830 after two years.

a) What is the rate of interests charged by both and who charged more?

b) If Bank Muscat is ready to give the same amount in the form of loan at 6% interest rate, analyze which interest rate is cheaper, Bank Muscat or rate charged by both?

Question 6: Samsung Mobile Company, a mobile handset manufacturing company manufactures 30000 mobile handsets per month at Salalah Plant. As per the purchase invoice, company incurs material cost RO 50 per unit, cost of labor RO 3 per unit and other manufacturing overheads RO 2 per unit. Samsung Mobile Company pays RO 2000 per month as a rent. Company adds 12% profit on total cost and distributes the chargers to retailers.

a) What would be the total cost of producing 30000 mobile handsets?

b) Extraa Mobile Stores recently bought 30000 mobile handsets from the Samsung Mobile Company. How much amount Extraa Mobile Stores paid to buy the 30000 mobile handsets?

c) Labour cost will be decreased, if company increases the production. Critically discuss

Question 7: Sohar Potato Chips LLC purchased a machine for OMR 12,000 for which depreciation will be measured as per diminishing balance method (WDV). Depreciation is calculated at 10% per annum for first 3 years and after that due to change in the accounting standards the rate of depreciation is changed at 7% per annum for next 2 years.
a) What would be the book value of the machine after 5 years
b) The accounts department informed you that book value of the machine after 5 years will be OMR 6500. Critically analyze
c) If the useful life of the machine is 5 years, what will be the scrap value of the machine?

Question 8: During COVID-19 Global lock down, there is short supply of cycles in the market in the month of April 2020. Al Maha Cycle store raises the price of a cycle by 5% above the list price and charges a VAT of 10 % on the increased price. A customer has to pay RO 2650 for the cycle (including VAT).
a) Find out the list price of the cycle.
b) Due to short supply of cycles, cycle store increased the cycle price. Critically discuss

Question 9: Ms. Lamya Al Hinai, an professional engineer working with Petroleum and Development of Oman (PDO) is interested in buying the BMW car for her personal use. She goes to BMW car showroom and decided to buy BMW 4 Series Coupe 2020 435i model. The price of the car is 29500 OMR and she decided to pay down payment of 9500 OMR and she approaches Bank Muscat for the balance amount. Bank Muscat informed her that she needs to pay 400 OMR per month for 5 years as an installment against the loan.
a) If she buys the car, what will be deferred payment price she needs to pay?
b) If she takes a bank loan, how much interest she needs to
Pay?
c) Do you suggest her to take a bank loan and buy the BMW car? Critically analyze

Question 10: On ls` January 2019, National Biscuit Company purchased a building for their administration activities in Muscat from a real estate company at OMR 1,200,000. Buildings are depreciated using the straight-line depreciation method with a useful life of 40 years. Salvage value of the building at the end of useful life is estimated as OMR 120, 000.
a) What is the amount of depreciation expense for 2019?
b) What is the book value of the building on December 31, 2020?
c) Which depreciation method, WDV or Straight line method is more precise? Critically analyze