Question

On April 1, Maryam established Maryam's Travel Agency. The following transactions were completed during the month: Pass journal entries to record the following transactions 1 April 2 April 3 April 4 April S April 6 April Performed services worth OMR 10,000: OMR 3,000 cash is received from customers, and the balance of OMR 7,000 is billed to customers on account. Invested OMR 15,000 cash to start the agency. Paid OMR 600 cash for April office rent. Purchased equipment for OMR 3,000 cash. Incurred OMR 700 of advertising costs in Oman Times, on account. Paid OMR 900 cash for office supplies. Withdrew OMR 600 cash for personal use. Paid Oman Times OMR 500 of the amount due in transaction on 4 April. Paid employees' salaries OMR 2,500. Received OMR 4,000 in cash from customers who have previously been billed 7 April 8 April 9 April 10 April in transaction in April 6. 11 April 12 April 13 April April 15 April 16 April 17 April 18 April 19 April Received OMR 5,000 from customers as advance payment for travel services next 20 April Paid 6-month insurance to Muscat Insurance Company, OMR 600

Answer 1

In the books of Maryam's Travel Agency

Journal Entries

Date	Account Titles	Debit Amount ( OMR )	Credit Amount( OMR )
01-Apr	Cash	3000
	Account Receivable	7000
	Service Revenue		10000
	( Being services performed for cash & on account )
	Cash	15000
	Capital Account		15000
	( Being Cash invested as capital to start the agency )
	Rent	600
	Cash		600
	( Being Rent for the month of april paid )
	Equipment Account	3000
	Cash		3000
	( Being equipment Purchased for cash )
04-Apr	Advertisement Expenses	700
	Account Payable		700
	( Being advertisement expenses payable to Oman Times )
	Office Supplies	900
	Cash		900
	( Being office supplies purchased for cash )
	Drawings	600
	Cash		600
	( Being cash taken over for personal use )
	Account payable	500
	Cash		500
	( Being Cash paid to Oman Times for advertisement )
	Salaries Expenses	2500
	Cash		2500
	( Being salaries paid to employees )
	Cash	4000
	Account Receivable		4000
	( Being cash received from customers for services rendered earlier on account )
	Cash	5000
	Unearned Service Revenue		5000
	( Being cash received in advance from customer fro travel services ) ( It is assumed that service is not performed in the month of April & hence credited to Unearned Service Revenue )
	Insurance Expenses	600
	Cash		600
	( Being 6 months insurance premium paid ) It is assumed that whole insurance expenses is to debited in the month of April )

Note: Date wise transactions are not given in the question.Hence,date of journal entry is kept blank.