College of Commerce and Business Administration (CCBA)

ASSIGNMENT COVER SHEET

Semester Spring : 2021-22

ASSIGNMENT 2

Course Code BUSS 102

Course Name Principles of Financial Accounting
Section
Name of Instructor
Student Name Yazan
Student ID 202020360
Submission Date 14 -05-2022

DECLARATION
I hold a copy of this assignment if the original is lost or damaged.
‫أحتفظ بنسخة من هذا الواجب في حال ان النسخة االصلية قد اتلفت او فقدت‬
I hereby certify that no part of this assignment or product has been copied from any other student’s work or from
.any other source except where due acknowledgement is made in the assignment
.ً‫ اصوال‬#‫ وقد تم االشارة الى الجزء المقتبس‬.‫أقر بانه ال يوجد أي جزء من هذا الواجب قد تم نسخه من اي واجب لطالب اخر او من مصدر اخر‬
I hereby certify that no part of this assignment or product has been submitted by me in another (previous or
current) assessment, except where appropriately referenced, and with prior permission from the instructor of
this course.
.‫أقر بانه ال يوجد أي جزء من هذا الواجب قد تم تسليمه سابقا ً في مقرر اخر اال بعد اخذ موافقة المدرس السابق لهذا المقرر‬
No part of the assignment/product has been written/produced for me by any other person except where
collaboration has been authorised by the instructor concerned.
.‫ال يوجد جزء من هذا الواجب قد اعده طالب اخر عدا اذا كان هذا الواجب مشترك بموافقة استاذ المقرر‬
I am aware that this work will be reproduced and submitted to plagiarism detection software programs for the
purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism
checking).
)‫ادرك ان هذا العمل سوف يخضع للفحص الغراض تحديد نسبة التشابة والسرقة العلمية (ان وجدت‬

Student’s signature:
Note1: An Instructorhas the right to not mark this assignment if the above declaration has not been signed.
.‫ لمدرس المقرر الحق في عدم تصحيح هذا الواجب اذا لم يتم توقيع االقرارات السابقة‬:‫مالحظة‬
Note2: Original for the Instructor and one copy with signature the Instructor for the student.

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 .‫النسخة االصلية تعطى لمدرس المقرر ونسخة ثانية (من عمل الطالب) مع توقيع المدرس تعطى للطالب‬ -
Q1:

Date Particulars Debit Credit

10.5.2020 Cash A/c Dr. 65000
Machinery A/c Dr. 25000
Capital A/c 90000
17.5.2020 Purchases A/c Dr. 15000
Cash A/c 8000
Payables A/c 7000
22.5.2020 Receivables A/c Dr. 18000
Cash A/c Dr. 12000
Sales A/c 30000
28.5.2020 Interest Expenses A/c Dr. 4000
Cash A/c 4000
29.5.2020 Cash A/c Dr. 14000
Receivables A/c Cr 14000
30.5.2020 Payables A/c Dr. 4500
Cash A/c 4500
Required:
(A) Post the Journal Entries into the Ledger Account
(B) Prepare a Trial Balance

Answeres (A)

Cash Account
Date Item Debit Credit Balance

10.5.2020 65000
17.5.2020 8000
22.5.2020 12000
28.5.2020 4000
29.5.2020 14000
30.5.2020 4500

91000 16500 74500

Machinery A/c
Date Item Debit Credit Balance

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10.5.202
0 25000 25000

Capital
Date Item Debit Credit Balance
10.5.2020 90000 90000

Purchases A/
Date Item Debit Credit Balance
17.5.2020 15000 15000

Payables
Date Item Debit Credit Balance
17.5.2020 7000
30.5.2020 4500 -2500

Receivables
Date Item Debit Credit Balance
22.5.2020 18000
29.5.2020 14000
4000

Sales A/c
Date Item Debit Credit Balance
22.5.2020 30000 30000

Interest Expenses A/c Dr.

Date Item Debit Credit Balance
28.5.2020 4000 4000

(B)

Trail Balance

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 SR.NO Accounts Debit Credit
1
Cash Account
 74500
Receivables
2
4000
Capital
3
90000
Machinery A/c
4
 25000
Payables
5
2500
Sales A/c
6
30000
Interest Expenses A/c
7
4000
8 Purchases
 15000
Balance
 204500  204500

Q2 . Calculate Net Sales, Cost of the goods Sold, Gross Profit and Net Profit from the
following information

Gross sales RO 53400 Purchase Discount RO 1675

Bank charges RO1654 Closing stock RO 11870
Cash RO 3200 Other Income RO 765
Owners’ Equity RO 76000 Building RO 32000
Depreciation RO 1230 Salaries RO 3450
Electricity RO 780 Sales Discount RO 6230
Freight in RO 1450 Sales returns is RO 4350
Opening stock is RO 7680 Purchases RO 16550
Machinery RO 21000 Purchase return RO 1240

Answer

Gross Sale 53400

Less:Discount (6330)
Retrun 4350

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Net Sales 42720
Less: COGS
Opening inventroy 7680
Add: Purchases 16550
less: Discount (1675)
Less: Retrun (1240)
Goods Avaible for sale 21315
Less: ending inventory (11870)
Cost of Goods Sold (9445)
Gross profit 33275
Less: opreting Expense
Bank charges 1654
Depreciation 1230
electricity 780
Freight in 1450
Total Opreting Expenses (5114)
opreting income 28161
Add:other income 765
Net profit 28926

Q3: Following is the trial balance of Dhofar Company for the year ended 31st
December 2020:
Account Debit Credit
Common Stock 48000
Accounts Receivable 17000
Accounts Payable 20000
Notes Payable 4000
Notes Receivable 22000
Bank 31000
Salary expenses 24000
Rent expenses 9000
Insurance expenses 6000
Other Income 14000

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 Machinery 52000
Buildings 63000
Loan 38000
Sales 194000
Purchases 44000
Sales Return 5000
Purchase Return 24000
Opening Stock 69000
Total 342000 342000

Required: Income statement as on 31.12.2020

Net Income

Net sales 189000

less; Expanses
Salary expenses 24000
Rent expenses 9000
Insurance expenses 6000
Total exp 39000
net income 150000

Q4 . : You are required to record the adjusting entries for the following information

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 a. The opening balance on 1 January 2020, for the supplies is RO12500. On 1 March
2020, the company purchased supplies for RO 32100 in cash. On 31 December
2020, the balance of supplies in the company is RO 14600.
b. On 1 January 2020, the company paid RO 38000 cash as rent expenses in advance
Rent expense per month is R 0 1500.
c. On 5 January 2016, a company received in advance rent of RO 42000 for 15
months.
d. The cost of a machine is RO 75000 and has a useful life of 5 years, the company
uses Straight Line method to calculate expense.
e. Interest on bank loan of RO 3200 which is due on 31 December is not yet paid.

Answer

Adjusting Entries

Date Description Debit Credit

1-Mar Supplies 32100
Cash 32100
(Purchased Supplies)
31-Dec Supplies Expanse 30000
Supplies 30000

1-Jan Pre-paid Rent Expense 38000

Cash 38000
(Paid Advance Rent)
1-Feb Rent Expanse 1500
Pre-paid Rent Expense 1500
(Monthly Rent Accured and Paid)
5-Jan Cash 45000
Unearned Revenue 45000
(Recived Payment in Advance)
6-Jan Depriciation Expense 1250
Accmulated Deprication 1250
Monthly Depriciation
31-Dec Interest Payable 3200
Accured Interst 3200
(Interest is accured but yet to pay)

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