Muscat Enterprises furnished the following information about their account balances as on 1st of January 2020. The company maintained its books of accounts manually, and currently, are interested to maintain their accounts in a computerized application.

You are required to create the company in Tally, enter the account balances and record the adjustments. Once adjustments are incorporated, show.

1. Income Statement for the period ended June 30, 2020

2. Balance Sheet as on June 30, 2020

	Amount (OMR)
Cash	55,000
Drawings	25,000
Capital	540,000
Retained Earnings	68,000
Plant and Machinery	125,000
Accumulated Deprecation - Plant and Machinery	50,000
Building	300,000
Accumulated Depreciation - Building	50,000
Motor Vehicles	50,000
Accumulated Depreciation - Motor Vehicles	20,000
Advance Rent	6,200
Salary payable	12,000
Sundry Creditors
BMC Inc.	25,000
NMC Inc.	37,500
Royal Traders	12,000
Sundry Debtors
A&M Traders	44,000
Snapdeal Traders	6,500
HRH Inc	99,000
Bank Overdraft	55,000
HSBC Bank Current Account	65,000
Supplies	2,200
Accrued Utility Charges	3,300
Inventory	117,960
Bills Payable	36,360
Bills Receivable	13,300

Transactions during 2020

10-1-2020	Sold goods for cash OMR150,000
10-1-2020	Paid the salary due.
25-1-2020	Goods purchased from BMC Inc OMR50,000 on account.
25-1-2020	Paid purchase transportation expenses OMR1,000
30-1-2020	Goods returned to BMC Inc. 4,000 due to quality issues.
30-1-2020	Settled amount due to BMC Inc.
30-1-2020	Bought supplies for cash OMR5,000
2-2-2020	Paid salary OMR22,000 by issue of bank cheque.
1-4-2020	Adjusted rent OMR6,200 with the advance rent.
2-4-2020	Paid advance rent OMR24,000 for one year starting from 1-4-2020.
1-4-2020	Cash transferred to bank OMR100,000
2-4-2020	Salary paid OMR22,000 by issue of bank cheque.
5-4-2020	Received the amount due from A$M Traders
5-5-2020	Paid maintenance expenses OMR10,000.
6-6-2020	The owner withdrew OMR10,000 from the business for personal use.
12-6-2020	Settled the bills payable by issue of bank cheque.
15-6-2020	Utility expenses paid OMR2,000
18-6-2020	Sold goods on account OMR10,000 to Bausher Traders.
18-6-2020	Goods returned by Bausher Traders OMR1,000

Adjustments

1. Rate of Depreciation

Building 20%

Motor Vehicle 25%

Plant and Machinery 25%

2. An inspection of supplies showed that supplies worth OMR2,000 is currently available for use.

3. Interest accrued OMR2,000

4. Outstanding salary OMR10,000

5. Utility charges due OMR1,000

Answer rating: 100% (QA)

Particulars Purchase Accounts Purchase Return Purchases Direct Expenses Carriage Inwards Indirect Ex... View the full answer