Question

Case 2. The following transactions are given from books of Al Karama LLC for the year 2019. You are requested to record the journal entries.

  

1. Trial Balance 2. Day Book 3. Income Statement.                                           

Date		Amount (in RO)
2019
Jan 1	Opening Balances : Buildings A/C	30,000
	Furniture A/C	15,000
	Cash A/C	35,000
	Bank A/C	17,500
	Al Khalid Product Company A/C ( Dr. Balance)	9,000
	Bank overdraft	12,500
	Capital A/C	?
Jan 2	Brought additional capital into the business	40,000
Jan 31	Deposited into bank	10,000
Feb 1	Purchased goods and paid by cheque	4,000
Feb 2	Purchased goods from Barka Industrial Company and got 5% trade discount	12,000
Mar 1	Cash Sales	10,000
Mar 2	Goods returned to Barka  Industrial Company	1,000
Mar 31	Purchased Equipment from Al Qurm Engineering Company	15,000
Apr 1	Withdrew from bank for office use	3,000
Apr 2	Sold goods to Ruwi Industries	15,000
May 1	Paid Wages and Salaries	3,000
May 2	Goods returned by Ruwi Industries	1,500
May 31	Paid carriage inwards	1,500
June 1	Received Commission	2,000
June 2	Received from Ruwi Industries	8,000
July 1	Paid to Barka  Industrial Company	5,000
July 2	Received from Al Khalid Product Company in full settlement	8,700
July 31	Paid to Barka  Industrial Company in full settlement	5,200
Aug 1	Goods Distributed as free samples	5,000
Aug 2	Received a cheque from Ruwi Industries in full settlement	5,000
Aug 31	Goods taken by proprietor for personal use	2,000
Sep 1	Paid Telephone charges by cheque	200
Sep 2	Paid Rent	1,000
Oct 1	Paid for Fuel and Power	500
Oct 31	Purchased goods and paid by cheque	9,500
Oct 31	Purchased goods from Muscat Chemical Industries	15,500
Oct 31	Cash Sales	25,000
Oct 31	Sold goods to Al Naba Services	25,000
Oct 31	Purchased goods from Raya Industries Company	8,000
Nov 1	Cash withdrawn from bank by proprietor for personal use	1,500
Nov 1	Sold Machinery worth RO. 3250 for RO. 3000
Nov 1	Goods returned to Muscat Chemical Industries	1,500
Nov 1	Goods returned by Al Naba Services	1,000
Nov 2	Paid carriage on purchases	150
Nov 2	Withdrew from bank for office use	2,500
Nov 2	Brought additional capital into business	50,000
Nov 2	Received cash from Oman Packaging Factory for cash sale	6,000
Nov 2	Purchased Equipment worth	11,500
Nov 2	Paid Insurance on Office Building	1,350
Nov 30	Paid for fuel and Power	950
Nov 30	Goods taken by proprietor for personal use	1,000
Nov 30	Sold goods to L&T Industries	14,800
Dec 1	Advertisement expenses	2,500
Dec 1	Deposited into Bank	15,000
Dec 31	Received interest	150
Dec 31	Paid Electricity charges	1,100
	Paid Salaries and Wages through bank transfer	2,500

Answer 1

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