Question

Q1. Omar Co. is an accounting firm that provide accounting consultancy services. The following transactions took place in Omar Co.: amounts in Saudi riyal a. In the 1st of January, Abdul-Aziz invested 6,000,000 in Omar Co. and he paid them in cash. b. In the 2nd of Jan, Omar Co. have purchased office equipment and paid 48,800 cash. c. In the 3rd of Jan, Omar Co. have purchased supplies on credit by 18,500. d. In the 25th of Jan, Omar Co. provided accounting services to Ahmed and collected 19,010. Required: Journalize those transactions and post them to T account?

Answer 1

1 jan       Cash a/c Dr. 6000000

     To Abdul aziz capital a/c cr. 6000000

             (being amount invested by abdul aziz in firm)

2 jan       Office equipment a/c dr. 48800

                    To cash a/c cr. 48800

           (being office equipment purchased on cash)

3 jan        supplies A/c dr. 18500

                    To creditor a/c dr. 18500

              (being supplies purchased on credit)

25.jan            Cash a/c dr. 19010

                  To Service Revenue cr. 19010

              (being services rendered to ahmed and collected 19010 in cash)

CASH ACOOUNT

Particulars	amt.	particulars	amt.
To abdul aziz capital a/c	6000000	by office equipment	48800
To service revenue a/c	19010	by bal c/d	5970210
	6019010		6019010

Abdul aziz account

particulars	amt.	particulars	amt.
To bal c/d	6000000	by cash a/c	6000000

office equipment account

particulars	amt.	particulars	amt.
To cash a/c	48800	by balc c/d	48800

supplies a/c

particulars	amt.	particulars	amt.
to creditor	18500	by bal c/d	18500

service revenue

particulars	amt.	particulars	amt.
to bal c/d	19010	by cash a/c	19010

creditor a/c

particulars	amt.	particulars	amt.
to bal c/d	18500	by supplies a/c	18500