Question

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. question no.1 a) prepare the journal entries to record the above transactions. use the journal provided below. explanations are required. provide journal page. (5 marks) b) post the journal to the ledgers. use the legers given. provide account numbers.

Answer 1

Part 1 Page 1 Joonnal Entries DV 25000 1 Cash Ale To Capital Al 25000 Dr Bank macat de To Cash 10000 V 10000 8 Compulen Al Dr 500 u To Emanc (Rocamb Cash [500x201) to 300 200 10 Cash olc Dr Accocints necewbe ok. Du To Revenue saom Seculce 360 240 GOO 15) Salany olc Dv Du 1800 200 Rent Ak s To Cash 2000 100 . Du 120 Cash Al To Accounts de ceuke [240x1/2) 120 24) Max roll Dr 150 E To Cash [300x1/2] 150

Page 2 Capital Alc [Dacungs] 26) Drawings to Dy To Bank muscat de 300 306 31) 500 500 Accounts receivable [Salem] To Revenue from serves [as it is not clean, whe ton amcant deceived od not, it has been assaimed as not received] Step 2: Lediger parepantion Cash ok I IJF JF to Capital role To Revenue from seavice 10 Acccants neceivable I 25000 By Bank Muscat 360 By compaten 18 120 By Salary 10 18 100000 200 1800 200 115 By Rent 15 By Emaic 29 150 By Balance Cla 13130 25480 25480 ग Capital ok. IJF JF 128 125000 To Bank muscat TO Balance cld 300 By Cash 2200 2500 2500 2/2

Page 3 Computer rok. 6 1o cash 10 Emar 200 306 By Balance ald 500 500 E-Max (Paycuble] 24 150 By Computer 8 300 To Cash To Balance eld 150 300 300 Accounts Receivable to Revenue from seule 10 240 By Cash 18 120 120 By Balance cld 240 240 Revenue Scrom Service By Cash 360 246 500 To Balance cl By Al Recervabe By Ak Receivabe (salem) 31 1100 100 1100 3/3

Bank Musca do Rego 4 To Cash 28 300 516000 By Capilla. By Balomo cld 9700 10,000 ligooo Salony colo To Carh 05 1800 By Balana old 1800 1800 1800 Rent colo To Cash 15200 By Balane uld 200 200 200 Accounts Receivable [Salom) To Revenus soom Serve 31 500 By Balune ctch 31500 506 4/4