Task 1

If you are the newly hired staff, determine the source

documents and give reason of your choice for the
following business transactions,
1. Deposited OMR 10,000 as initial investment--- bank account opening
with deposit slip
Reason: These are documents serving as proof that cash has been
deposited in a bank account.
2. Issued OMR 5000 for cash collected from customer----cash receipts
from account receivable
Reason: These are documents confirming that cash or goods have been
received.
3. Issued OMR 4000 as payments of accounts payable---payment voucher
to be prepared for accounts payable settlement
Reason: The documents prepared for the purpose of recording business
transactions in the books of accounts are known as vouchers.
4. Filled up bank slip for OMR 2000 in number 3, plus OMR 1000 cash
deposited in the bank--- Credit note
Reason: A credit note is a source document providing evidence that a
credit entry has been made in the financial records for specific reason
which is explained on the face of this business document.
5. Issued OMR 1000 note for cash loan received from bank---bank
transfer for OMR 1000 for loan settlement
Reason:

1
6. Issued OMR 500 for the payment of supplies delivered by supplier---
settlement of account payable by issuing cheque
Reason: A cheque is an unconditional order, drawn upon a specified
banker, signed by the maker, directing the banker to pay on demand a
certain sum of money only to the order of a person or the bearer of the
instrument.
7. Received slip from employee for the OMR 100 cash taken by the
employee for his collection of the accounts receivable of the business----
Invoice
Reason: These are documents listing goods or services provided, as
well as their prices. Suppliers normally send an invoice together with
goods
8. Received OMR 400 note from bank representing bank charges--- bank
statement
Reason: A bank statement or account statement is a summary of
financial transactions which have occurred over a given period on a
bank account held by a person or business with a financial institution.
9. Issued OMR 50 rebate from supplier--- we will send debit note for OMR
50
Reason: A debit note is a document which shows that the business
enterprise has raised debit against the party to whom this document is
sent in respect of any business transaction other than the credit sale.
10. Received OMR 600 from bank for interest earned---Gift Card
Reason: Gift Cards are documents that include a monetary credit. When
sold, gift cards include an initial balance that can be consumed in point
of sale orders until all the credit is consumed.

2
Task 2
As manager, make a comparison why would you favor the
computerization of your payroll and why would you opt for
the manual system instead.
An accounting system is the system used to manage the income, expenses, and
other financial activities of a business. An accounting system allows a business to
keep track of all types of financial transactions, including purchases (expenses),
sales (invoices and income), liabilities (funding, accounts payable), etc. and is
capable of generating comprehensive statistical reports that provide management
or interested parties with a clear set of data to aid in the decision-making process.

Accounting is an important part of every company. Businesses are required to

keep books on their credits and debits. So which is best for your business idea -
people or software?

As many professional accountants and auditors state - accounting is a language of

business which is accepted in all developed and developing countries.

Every company applies accounting because it is generally accepted that companies

have to reveal certain financial and management information to the government
and public users and of course because accounting is indispensable tool in business
decision-making process.

With the development of information technologies there were developed many

computer products (software) that make accounting as easy as ABC for those who
uses them. From this point accounting can be divided into two basic categories:
those which apply manual accounting and those which prefer computerized
accounting systems, and their comparison.

As a manager I am showing some points on which I can depend for choosing

computerized or manual accounting system.

These are as follows,

3
 Basis of Manual accounting Computerized accounting
difference
We keep physical register of We use computer and different
1.Definition journal and ledger for keeping accounting software for digital
the records of each transaction record of each transaction

All calculations are of adding Our duty is to record the

2.Calculation and subtracting are done transactions manually, all the
manually. calculations are done by
computer.
we check the journal and then Computerized accounting
3.Ledger we transfer figures to related system will automatically
accounts accounts' debit or credit side process the system and will
through manual posting. make all the accounts ledgers

we have to collect the Our computerized accounting

4.Trial information of the balances of system will produce trial balance
Balance all accounts in our ledger, on automatically.
this basis, we have prepared the
trial balance manually.
Both adjustment journal entries Only adjustment entries will
5.Adjustment and its posting in the ledger pass in the computerized
entries accounts will be done manually accounting system, posting in
record one by one. the ledger accounts will be done
automatically.

We have to make the financial We need not prepare financial

statements manually by careful
6.Financial transferring trial balance's
statements figures in income statement and
balance sheet.
statement manually, financial
statements will become
automatically. It will also
change after each voucher entry
in the system which facility is
not available in the manual
accounting system.

4
5