Gulf Greetings is a holding company based in Dubai has started its operations in Oman in...

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Gulf Greetings is a holding company based in Dubai has started its operations in Oman in January 1, 2020. It has 2 branches in Oman- Muscat and Ibra. The bookkeeper of the Ibra branch has caused the following errors in the books of the branch. i. Purchase of merchandise inventory for OMR 500 cash has not been posted in Cash Асcount. ii. Sales Return Account was overcast by OMR 100. iii. Sales revenue of OMR 12,000 eamed is credited to Service Revenue Account. iv. Wages Expense Account was balanced with OMR 600 short. v. A balance of OMR 1,800 in Interest Revenue Account is carried forward to next page as OMR 180. vi. Prepaid rent of OMR 100 is not recorded. vii. Purchase of building OMR 100,000 is debited to Repairs and Maintenance Account. viii. A service revenue of OMR 500 received in advance is recorded as Service Revenue Account. ix. OMR 1,234 paid for the rent expenses is recorded with an amount of OMR 1,324. Depreciation expense of OMR 250 on building is recorded twice. X. a. For cach of the above errors, you are required to; i. Identify the type of error and ii. Rectify the errors. b. Will the following errors affect the profitability of a company? Explain. i. Error of Principle ii. Error of Commission iii. Error of Partial Omission Gulf Greetings is a holding company based in Dubai has started its operations in Oman in January 1, 2020. It has 2 branches in Oman- Muscat and Ibra. The bookkeeper of the Ibra branch has caused the following errors in the books of the branch. i. Purchase of merchandise inventory for OMR 500 cash has not been posted in Cash Асcount. ii. Sales Return Account was overcast by OMR 100. iii. Sales revenue of OMR 12,000 eamed is credited to Service Revenue Account. iv. Wages Expense Account was balanced with OMR 600 short. v. A balance of OMR 1,800 in Interest Revenue Account is carried forward to next page as OMR 180. vi. Prepaid rent of OMR 100 is not recorded. vii. Purchase of building OMR 100,000 is debited to Repairs and Maintenance Account. viii. A service revenue of OMR 500 received in advance is recorded as Service Revenue Account. ix. OMR 1,234 paid for the rent expenses is recorded with an amount of OMR 1,324. Depreciation expense of OMR 250 on building is recorded twice. X. a. For cach of the above errors, you are required to; i. Identify the type of error and ii. Rectify the errors. b. Will the following errors affect the profitability of a company? Explain. i. Error of Principle ii. Error of Commission iii. Error of Partial Omission

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The error of partial omission a... View the full answer