Question

You are asked to prepare the Balance Sheet after each of the transactions to prove the Basic Accounting Equation.

ASSETS = LIABILITIES + CAPITAL

1. Mr. Abdulla started business with cash OMR………………………………on 1^st January 2019.
2. Purchased furniture on credit from Greens Furniture OMR 1000
3. Took a bank loan of OMR 12,000 from Bank Muscat
4. Owner withdrew cash for his personal use OMR…………………………
5. Purchased goods on credit from Oman Traders OMR 5,100
6. Purchased Machinery on credit from Salim OMR 20,000
7. Paid Greens Furniture OMR 150
8. Sold goods on Credit OMR 1900 (costing OMR 1500) to Mr. Asim
9. Received the money due for goods sold on credit.
10. Paid to Oman Traders OMR 2000.

NOTE. 1.       The amount for transaction 1 shall be any Amount you wish above OMR 50000.

2.       The amount for transaction 2 shall be any Amount you wish between OMR 5000 and 10000

3.       Please see that the amount you select shall not be the same as that of your friends.

4.       Submit the assignment on or before 5^th November 2020 through E- Learning.

5.       Late submissions are not encouraged as it may cause the reduction of marks.

6.       Maximum marks for this activity shall be 5.

Answer 1

ans) Journal entry

1) Cash a/c Dr 60,000

To Abdulla's capital a/c 60,000

Liability	Amount ( OMR)	Asset	Amount (OMR)
Abdulla's capital	60,000	Cash	60,000

2) Furniture a/c Dr 1,000

To Greens furniture a/c 1,000

Liability	Amount ( OMR)	Asset	Amount ( OMR)
Trade payable Greens furniture	1,000	Tangible asset Furniture	1,000

3) Bank a/c Dr 12,000

To Loan from bank muscat a/c 12,000

Liability	Amount ( OMR)	Asset	Amount ( OMR)
Loans or advances: Loan from bank muscat	1,000	Cash and cash equivalents: Balance at bank	1,000

4) Assume the owner had withdrawn OMR 6000

    Drawings a/c Dr 6000

To Cash a/c 6000

Liability	Amount ( OMR)	Asset	Amount ( OMR)
Capital 60,000 Less: Drawings (6000)	54000	Cash (60,000 - 6000)	54,000

5) Inventory ( purchase ) a/c Dr 5100

To Oman Traders a/c 5100

Liability	Amount ( OMR)	Asset	Amount ( OMR)
Trade payable: Oman traders	5100	Inventory	5100

6) Machinery a/c Dr 20,000

To salim a/c   20,000

Liability	Amount ( OMR)	Asset	Amount ( OMR)
Trade payable: Salim	20,000	Machinery	20,000

7) Greens furniture a/c Dr 150

To cash a/c 150

( here, liability decreases by OMR 150 and asset decreases by OMR 150)

8) Mr . Asim a/c Dr 1900

To sales a/c 1900

( here, asset- trade receivable increases by OMR 1900 and income increases by OMR 1900)

9) Cash a/c Dr 1900

To Mr . Asim 1900

( here, asset - cash increased by OMR 1900 and asset - trade receivable decreased by OMR 1900)

10) Oman traders a/c Dr 2000

To cash a/c 2000

( here, Trade payable- liability  decresed by OMR 2000 and cash - asset decreased by OMR 2000)