Question

(10) Mr. Ibrahim started his grocery stores with an Investment of RO 60,000 and took a Loan of RO 75,000 from Oman Development Bank. In the year 2019, he could able to achieve Credit Sales of RO 185,355 resulting Accounts Receivable of RO 55,455, Discount Allowed to customers worth 15,225 and Commission Paid to Sales Directors of RO 12,365. Ibrahim Purchased RO 126,550 worth of grocery items on short term credit from suppliers, where at the yearend the Accounts Payables of RO 39,565 were left due. He constructed Grocery Stores Building with a cost of RO 87,945. He also purchased Transportation Vehicles for RO 35,450 before the start of his business. He paid Salaries worth RO 15,000 and Shop Maintenance Charges worth RO 2,500 for the year 2019. He is also Receiving a Rent of RO 500 per month for allowing Bank Muscat to keep their ATM in his grocery stores. At the end of the year he had Liquid Cash in his counter worth RO 15,430.

which amount will be depit and which amount will be credit?

Answer 1

Trail balance for the year 2019
		Dr	Cr
1	capital	-	60000
2	Sales	-	185355
3	Loan from Oman development bank	-	75000
4	Account receviable	55455	-
5	Discount allowed	15225	-
6	Comission paid	12365	-
7	Purchased RO	126550	-
8	Accounts payable		39565
9	Grocery store building	87945	-
10	Transportation Vehicle	35450	-
11	Salaries	15000	-
12	Shop Maintenance Charges	2500
13	Cash in Hand	15430	-
14	Rent Income	-	6000
TOTAL	365920	365920