Question

Solve the following problems. Case - 1 After several years with a large accounting firm, Ahmed decided to establish his own accounting firm. The following transactions were completed during May 2020: May 1. Started the business with OMR 25,000 cash. 5. Deposited OMR 10,000 to Bank Muscat. 8. Bought computers OMR 500 from E-Max, paid 40% and the balance on account. 10. Performed accounting services for clients, OMR 600, received 60% and the balance after two months. 15. Paid salaries of staff and rental of office space, OMR 1,800 and OMR 200, respectively. 18. Collected the one-half of the balance for the services performed on May 10. 24. Paid the 50% of the balance due to E-Max on the furniture bought on May 8. 28. Withdrew from Bank Muscat OMR 300 for personal use. 31. Billed Salem OMR 500 for accounting services rendered.

Answer 1

Case I -Hiteclay Page : Date: / / Journal Date Debit credit Mary Particulars Cesh. Capital 25000 25000 Mays Bank Cash 10000 10000 S20 May -Computer Cash E Max 200 300 Cash May 10 Ace. Receivable Service Revenue 360 240 600 May 18 Salasics Rent Expenses Cash 1800 200 Mayt Cash 120 Acc. Receivable f-Hay Cash Iso Master 150 Docwings 300 theory 300 so May Salem Source fevenue CS Scafined with CamScanner

Hitech Page : Date: / / Balance sheet Notes layable SS Accouts payable 143000 Salaries fuyable 34021 Interest Payable zoo Mosterge payable 49000 Unecioned Revenue 3000 Cash Acc-Receivable boep. Insurance Supplies Land Bedry. ACC-Dep. Computer -ACC-Del. Bep Rent Belaid Adved. Bonne ODD 22000 3310no 34000 zero lrooro 850VD Qu5000 620000 (124000 tooo Capital 3oo Drawings (asoco) & Net income 444000 3o0o (3000 1781000 1981900 CS Scahned with CamScanner

Hitech Page : Date: / / unadjusted fical Bali Debit credit 12890 25000 loooo 330 180 Particulars -Cash Capital Bank - Computer f Max accounts Receivable Service Revenia salaries pent expery Drawings salem 120 loo 1800 200 300 od Income Statestent Service Reverne 1479000 8000 Advertisment sroo Rent Salary 849000 Insurance Suphlies 53000 Depriciation Isoro Bedre 18000 Composter Interest 77000 Huhoo 14721000 pet momey Scanned with Camscame? 449900

Hitech Page : Date: / Corrected Trial Balance: Particulay Debit Gredit Cash 79800 Accounts receivable 350 4co Sukhlies 114400 Prepaid Insurance Yorup office Equipment so940 Notes Payable Accounts Payable Ghital Docwings Service Revenue salaris Exlense 348700 7460 Suspense fusco 1/ 5200 270Moo 297200 100000 845coo Helvedisas Exl. -Cs Scanned with CamScanner

-Hitech Page : Date: / -Corrected Journal Entries Accounts Receivable 2700 Scele 200 2 Advertising Exer to suspens 5200 S2.0 3 4. Notes Raycine Isono Account Payable 15700 Suphlig 30bco to Cash 30600 Suspense остр Accounts Payable Boom S G senice revenue Suspense noad 40000 Accounts beceivable 63600 Service Revence $6360 Guhhlies 17uw office fouipment 17400 CS Scanned with CamScanner