A Sole Trader business incorporates as Software Programming Company that specialises in providing computer programming services....
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A Sole Trader business incorporates as Software Programming Company that specialises in providing computer programming services. The business has been established on 1st November, 2020 without having specialised accounting department or system. However, at the end of November the business faces major difficulties and misunderstanding of the process of recording and journalizes the relevant economic transactions that have been done during the first month in an appropriate and standardized way. Instructions In this task you have to use the transactions given at the end in order to: 1) Analyse transactions using double entry bookkeeping appropriately and effectively. Your analysis should show the effects of transactions on the basic accounting equation and the progression toward preparing the trial balance. The analysis should include: a) Which accounts does the transaction affect? (Names of individual accounts?) b) What category does each of these accounts belong to? (Asset, Liability or Owner's Equity, Revenue, Expense or Drawings?) c) Is the value of the individual account going to increase or decrease as a result of the transaction? 2) Journalize the November transactions, by applying the double entry book-keeping system of debits and credits. Problem 2: Your line manager has asked you to use the Journal book that you have produced previously for the Software programming company (in problem 1) in order to: Instructions 1) Open ledger accounts and post the November transactions. 2) Prepare a Trail Balance at Nonember 30th, applying the use of the balance off rule to complete the ledger. 3) Apply trial balance figures to show which statement of financial accounts they will end up in. Problem 3: In this task your line manager wants to assess your understanding and ability to prepare and produce the appropriate final accounts such as profit and loss account, owners' equity statement, and balance sheet. Instructions 1) Produce the final accounts for a sole trader business (Software Programming Company) including profit and loss account, owners' equity statement, and balance sheet for the Period ended November 30th. Using the trial balance that you have produced in problem 2. 2) Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content. TRANSACTIONS 1. July 1. Mr. Ali The owner invests OMR 60,000 cash in the business. 2. July 2. The business purchased office equipment for OMR 15,000 cash. 3. July 3. The business purchased supplies for OMR 3,600 on account. 4. July 5. The business provided OMR 14,000 services for a customer and received cash of OMR 7,000, and it billed the balance of OMR 7,000 on account. 5. July 7. The business purchased computer for OMR 7,000. 6. July 10. The business paid OMR 3,600 from the purchases due balance for the supplies. 7. July 15. The business purchased supplies OMR 8,000 in cash. 8. July 20. The business provided service to customer on account OMR 11,000. 9. July 23. The business received OMR 5,500 of the due balance from the customers. 10. July 27. Owner withdrawn OMR 1,600 cash from the business for his personal use. 11. July 29. The business received OMR 4,500 for the service provided to customer. 12. July 30. The business paid Store rent OMR 1,000 13. July 30 The business paid salaries and wages of employees OMR 3,400 14. July 31. The business purchased a 6-month insurance policy for OMR 1,800 15. July 31. Received and paid the electricity and other utilities bills of OMR 1,100. A Sole Trader business incorporates as Software Programming Company that specialises in providing computer programming services. The business has been established on 1st November, 2020 without having specialised accounting department or system. However, at the end of November the business faces major difficulties and misunderstanding of the process of recording and journalizes the relevant economic transactions that have been done during the first month in an appropriate and standardized way. Instructions In this task you have to use the transactions given at the end in order to: 1) Analyse transactions using double entry bookkeeping appropriately and effectively. Your analysis should show the effects of transactions on the basic accounting equation and the progression toward preparing the trial balance. The analysis should include: a) Which accounts does the transaction affect? (Names of individual accounts?) b) What category does each of these accounts belong to? (Asset, Liability or Owner's Equity, Revenue, Expense or Drawings?) c) Is the value of the individual account going to increase or decrease as a result of the transaction? 2) Journalize the November transactions, by applying the double entry book-keeping system of debits and credits. Problem 2: Your line manager has asked you to use the Journal book that you have produced previously for the Software programming company (in problem 1) in order to: Instructions 1) Open ledger accounts and post the November transactions. 2) Prepare a Trail Balance at Nonember 30th, applying the use of the balance off rule to complete the ledger. 3) Apply trial balance figures to show which statement of financial accounts they will end up in. Problem 3: In this task your line manager wants to assess your understanding and ability to prepare and produce the appropriate final accounts such as profit and loss account, owners' equity statement, and balance sheet. Instructions 1) Produce the final accounts for a sole trader business (Software Programming Company) including profit and loss account, owners' equity statement, and balance sheet for the Period ended November 30th. Using the trial balance that you have produced in problem 2. 2) Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content. TRANSACTIONS 1. July 1. Mr. Ali The owner invests OMR 60,000 cash in the business. 2. July 2. The business purchased office equipment for OMR 15,000 cash. 3. July 3. The business purchased supplies for OMR 3,600 on account. 4. July 5. The business provided OMR 14,000 services for a customer and received cash of OMR 7,000, and it billed the balance of OMR 7,000 on account. 5. July 7. The business purchased computer for OMR 7,000. 6. July 10. The business paid OMR 3,600 from the purchases due balance for the supplies. 7. July 15. The business purchased supplies OMR 8,000 in cash. 8. July 20. The business provided service to customer on account OMR 11,000. 9. July 23. The business received OMR 5,500 of the due balance from the customers. 10. July 27. Owner withdrawn OMR 1,600 cash from the business for his personal use. 11. July 29. The business received OMR 4,500 for the service provided to customer. 12. July 30. The business paid Store rent OMR 1,000 13. July 30 The business paid salaries and wages of employees OMR 3,400 14. July 31. The business purchased a 6-month insurance policy for OMR 1,800 15. July 31. Received and paid the electricity and other utilities bills of OMR 1,100.
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Related Book For
Essentials of Business Communication
ISBN: 978-1111821227
9th edition
Authors: Mary Ellen Guffey, Dana Loewy
Posted Date:
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