Question
In: Accounting
Mr. Ali the owner of a business in Muscat; incorporates as Software Programming Company that specialises...
Mr. Ali the owner of a business in Muscat; incorporates as
Software Programming Company that specialises in providing computer
programming services and selling computer devices and accessories.
The business has been established on 1st July 2019 without having
specialized accounting department or system. However, at the end of
July the business faces major difficulties and misunderstanding of
the process of recording and journalizing the relevant economic
transactions that have been done during the first month in an
appropriate and standardized way. In this case you are required to
handle some financial problems that Mr. Ali has provided you with
the following transactions:
July 1. Mr. Ali The owner invests OMR 110,000 cash in the
business.
July 2. The business purchased office equipment for OMR 45,000
cash. With annual depreciation of 10% for the next 10 years with no
expected salvage value.
July 3. The business purchased for OMR 3,600 on account from a
Supply Company computer paper and other supplies expected to last
for several months.
July 5. The business provided OMR 14,000 of programming and
maintenance services for a customer. It received cash of OMR 7,000,
and it billed the balance of OMR 7,000 on account.
July 7. The business purchased computer accessories as an
inventory in order to resell them. The business purchased 1000
headsets for OMR 10 each.
July 10. The business paid OMR 4,000 from the purchases due
balance for the supplier.
July 15. The baseness purchased supplies OMR 8,000 in
cash.
July 20. The business sold 550 units for customers for OMR 20
each.
July 23. The business received OMR 5,500 of the sales due
balance from the customers.
July 27. Mr. Ali withdrawn OMR 1,600 cash from the business
for his personal use.
July 28. The business hired a new secretary with basic salary
of OMR 650.
July 29. The business received OMR 4,500 for programming
services that will provide during the next 3 months.
July 30. The business paid the following expenses in cash for
July: Store rent OMR 1,000, salaries and wages of employees OMR
3,400.
July 31. The business purchased a 6-month insurance policy for
OMR 1,800
July 31. Received and paid the electricity and other utilities
bills of OMR 1,100.
From the above transaction you are required to prepare:
7. Post the entries and calculate the balances. (0.5 Mark*13 =
6.5 marks)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Mr. Ali the owner of a business in Muscat; incorporates as Software Programming Company that specialises...
Mr. Ali the owner of a business in Muscat; incorporates as
Software Programming Company that specialises in
providing computer programming services and selling computer
devices and accessories. The business has been established on 1st
July 2019 without having specialized accounting department or
system. However, at the end of July the business faces major
difficulties and misunderstanding of the process of recording and
journalizing the relevant economic transactions that have been done
during the first month in an appropriate and standardized...
Mr. Ali the owner of a business in Muscat; incorporates as Software Programming Company that specialises...
Mr. Ali the owner of a business in Muscat; incorporates as
Software Programming Company that specialises in
providing computer programming services and selling computer
devices and accessories. The business has been established on 1st
July 2019 without having specialized accounting department or
system. However, at the end of July the business faces major
difficulties and misunderstanding of the process of recording and
journalizing the relevant economic transactions that have been done
during the first month in an appropriate and standardized...
Mr. Ali the owner of a business in Muscat; incorporates as Software Programming Company that specialises...
Mr. Ali the owner of a business in Muscat; incorporates as
Software Programming Company that specialises in providing computer
programming services and selling computer devices and accessories.
The business has been established on 1st July 2019 without having
specialized accounting department or system. However, at the end of
July the business faces major difficulties and misunderstanding of
the process of recording and journalizing the relevant economic
transactions that have been done during the first month in an
appropriate and standardized...
Mr. Ali the owner of a business in Muscat; incorporates as Software Programming Company that specialises...
Mr. Ali the owner of a business in Muscat; incorporates as
Software Programming Company that specialises in providing computer
programming services and selling computer devices and accessories.
The business has been established on 1st July 2019 without having
specialized accounting department or system. However, at the end of
July the business faces major difficulties and misunderstanding of
the process of recording and journalizing the relevant economic
transactions that have been done during the first month in an
appropriate and standardized...
Mr. Ali the owner of a business in Muscat; incorporates as Software Programming Company that specialises...
Mr. Ali the owner of a business in Muscat; incorporates as
Software Programming Company that specialises in providing computer
programming services and selling computer devices and accessories.
The business has been established on 1st July 2019 without having
specialized accounting department or system. However, at the end of
July the business faces major difficulties and misunderstanding of
the process of recording and journalizing the relevant economic
transactions that have been done during the first month in an
appropriate and standardized...
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