in below case you people not deduct the amount of discount when you recorded the transaction in cash book you just take the amount directly in bank or cash coulem like these transaction

an. 10 He pays Said by Check = OMR. 1980 and receive discount = OMR. 20
Jan. 11 He receive check from Wasim = Rs. 970 and allow him discount = Rs. 30
an. 22 He pays Essam traders in cash = OMR. 2000 and receives discount = OMR. 100

but in below transaction you deduct the amount of discount like
these truncation
Bought goods for OMR. 2,000 paid cheque for them, discount received 1%
Received a cheque from Irfan to whom goods were sold for OMR. 800. Discount allowed 12.5 % and
so in this case ,you people first calculate amount of discount and deducted the amount of discount from the amount then recorded the transaction in cash book.

so, i want to know the reason ?? i understood the cash book and the solution of both but i want to know the reason why fist case we not dedact like the second one

For the situations presented, describe the recommendations the internal auditors should make to prevent the following problems.      

Situation 1: Many employees of a firm that manufactures small tools pocket some of the tools for their personal use. Since the quantities taken by any one employee are immaterial, the individual employees do not consider the act as fraudulent or detrimental to the company. The company is now large enough to hire an internal auditor. One of the first things she did was to compare the gross profit rates for industrial tools to the gross profit for personal tools. Noting a significant difference, she investigated and uncovered the employee theft.

Situation 2: A manufacturing firm’s controller created a fake subsidiary. He then ordered goods from the firm’s suppliers, told them to ship the goods to a warehouse he rented, and approved the vendor invoices for payment when they arrived. The controller later sold the diverted inventory items, and the proceeds were deposited to the controller’s personal bank account. Auditors suspected something was wrong when they could not find any entries regarding this fake subsidiary office in the property, plant, and equipment ledgers or a title or lease for the office in the real-estate records of the firm

1. In the 1970s, the United States federal government created a Department of Energy. This is a time when the OPEC (Organization of Petroleum Exporting Countries) cartel first became prominent. Identify how this action might have impacted the three major macroeconomic goals of our economy.

2. Suppose you live in a community of 100 people where everyone is able and seeks to work. If 80 people are over 16 years old and 72 of them are employed, what is the unemployment rate in this community?

3. What are the three major types of unemployment? What are their causes?

4.  What is the business cycle? Explain the four phases of the business cycle.

5. Suppose a consumer buys 10 units of good X and 20 units of good Y every year. The following table lists the prices of goods X and Y in the years 2005-2007. Assume that these two goods constitute the typical market basket. Calculate the price indices for these years with 2005 as the base year. Comment on the inflation picture for these years.

During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes.

Income components before income tax for 2018, 2017, and 2016 were as follows ($ in millions):

Dividends of $26 million were paid each year. Batali’s fiscal year ends December 31.

Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (Ignore income taxes.)
2. Prepare the 2018–2017 comparative income statements.
3. & 4. Determine the balance in retained earnings at January 2017 as Batali reported using FIFO method and determine the adjustment of balance in retained earnings as on January 2017 using average method instead of FIFO method.

Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 76,700 units of product: Net sales $1,518,660; total costs and expenses $1,744,400; and net loss $225,740. Costs and expenses consisted of the following.

Management is considering the following independent alternatives for 2014.

During the first month of operations ended July 31, YoSan Inc. manufactured 8,600 flat panel televisions, of which 8,100 were sold. Operating data for the month are summarized as follows:

Required:

1. Prepare an income statement based on the absorption costing concept.

2. Prepare an income statement based on the variable costing concept.

3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).

The income from operations reported under   costing exceeds the income from operations reported under  costing by the difference between the two, due to   manufacturing costs that are deferred to a future month under   costing.

Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 79,000 units of product: net sales $1,975,000; total costs and expenses $1,805,000; and net loss $170,000. Costs and expenses consisted of the following.

Sweeny Corporation owns 60 percent of Bitner Company's shares. Partial 20X2 financial data for the companies and consolidated entity were as follows:

On January 1, 20X2, Sweeny's inventory contained items purchased from Bitner for $75,000. The cost of the units to Bitner was $50,000. All intercorporate sales during 20X2 were made by Bitner to Sweeny.

Required:

a. What amount of intercorporate sales occurred in 20X2?

b.

How much unrealized intercompany profit existed on January 1, 20X2? On December 31, 20X2?

c.

Prepare the worksheet consolidation entries relating to inventory and cost of goods sold needed to prepare consolidated financial statements for 20X2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

*Record the entry to eliminate the beginning inventory profit.

*Record the entry to eliminate the intercompany inventory sale.

d.

If Bitner reports net income of $90,000 for 20X2, what amount of income is assigned to the noncontrolling interest in the 20X2 consolidated income statement?

1. During the first month of operations ended July 31, YoSan Inc. manufactured 8,800 flat panel televisions, of which 8,300 were sold. Operating data for the month are summarized as follows:

   Sales		$1,494,000
   Manufacturing costs:
   Direct materials	$748,000
   Direct labor	220,000
   Variable manufacturing cost	193,600
   Fixed manufacturing cost	96,800	1,258,400
   Selling and administrative expenses:
   Variable	$116,200
   Fixed	53,500	169,700

   Required:

   1. Prepare an income statement based on the absorption costing concept.

   YoSan Inc.
   Absorption Costing Income Statement
   For the Month Ended July 31
   		$
   Cost of goods sold:
   	$
   		$
   		$

   2. Prepare an income statement based on the variable costing concept.

   YoSan Inc.
   Variable Costing Income Statement
   For the Month Ended July 31
   		$
   Variable cost of goods sold:
   	$
   		$
   		$
   Fixed costs:
   	$
   		$

   3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).

   The income from operations reported under___ costing exceeds the income from operations reported under ____ costing by the difference between the two, due to____ manufacturing costs that are deferred to a future month under ____ costing.

Check My Work

During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes.

Income components before income tax for 2018, 2017, and 2016 were as follows ($ in millions):

Dividends of $34 million were paid each year. Batali’s fiscal year ends December 31.

Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (Ignore income taxes.)
2. Prepare the 2018–2017 comparative income statements.
3. & 4. Determine the balance in retained earnings at January 2017 as Batali reported using FIFO method and determine the adjustment of balance in retained earnings as on January 2017 using average method instead of FIFO method.