Al-Khaled Trading Company for Office Furniture started on the first of September of the year 2011 with
Question:
Al-Khaled Trading Company for Office Furniture started on the first of September of the year 2011 with a capital of 25,000 dinars, presented as follows:
12000 dinars for the bank, 7000 dinars for merchandise, 5,000 dinars for machinery, 3,000 dinars for accounts receivable, 2,000 for accounts payable.
The company carried out the following operations during the month of September:
- On September 1, the company needed additional funds and borrowed an amount of 8000 dinars from Al-Quds Bank and put half of it in the company’s fund and the rest in the bank.
- On the 2nd of it, Khaled bought a land for his personal use for 12,000 dinars, paying for it in cash from his own money.
- On the 6th of it, the company agreed to sell Al-Ahmad Company merchandise (office furniture) for the amount of 4000 dinars to be delivered after a week. Al-Ahmad Company paid 5% of the value of the agreed goods by check deposited by Khaled in the bank as an advance payment (a deposit).
On the 9th of it, the company purchased goods from the Amir Company for the amount of 2000 dinars and paid half of it by check drawn on the bank and the rest on the account.
- On the 10th of it, the company sold goods to Al-Azzam Company for the amount of 2,200 dinars and got half of the amount by check deposited in the bank and the rest on the account.
On the 13th of it, the company delivered the agreed upon merchandise to Al-Ahmad Company and received the remaining amount by a check drawn on the bank.
On the 17th, the owner of the company bought a computer for 1,000 dinars in cash for his son from the company’s money.
- On the 25th of it, the owner of the company paid the rent of the office occupied by the company in the amount of 400 dinars in cash from his own money.
- On the 30th of the month, the company paid the remaining debts to the Prince's Company by a check drawn on the bank.
Required:
1- Proving the daily entries for the above operations in the general journal of Al-Khalid Trading Company
2- Copying and balancing the bank account in the general ledger.
Expert Answer:
Date Accounts Debit dinars Credit dinars September 1 2011 Bank 12000 Purchase 7000 Machinery 5000 Ac... View the full answer
