(a) The petroleum industry is divided into three major components: Upstream, midstream and downstream. IFRS6

Exploration for and Evaluation of Mineral Resources applies to expenditure incurred by an entity in connection with the

search for mineral resources.

Required

Illustrate how revenue for oil and gas companies should be determined in accordance with IFS 15, Revenue from Contracts with Customers.

(b) Given the following transactions:

1. Clients deposited BD100, 000 cash of which BD60,000 was deposited by Current Account customers and the rest

by Current Account customers (Securities Guarantee)

2. Customers withdrew BD70,000; half of this was by Current Account customers (Securities Guarantee) and the rest

by Current Account customers.

3. Current Accounts payable to the clients carried expenses amounting to BD16,000; Current Accounts (Securities Guarantee) carried expenses of BD14,000 and interest of BD44,000.

4-Current Accounts (Securities Guarantee) carried expenses of BD18,000 and interest of BD62,000.

Required:

Prepare the journal entries to record the above transactions in a bank's accounting records.

Answer rating: 100% (QA)

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