1. Mr.Ahmed and Mr. Anwar have been doing whole sale Electronics business in the Dhofar region for the past 10 years. They undertake repairs servicing as well, for which they appointed Mr. Khaleed to do the repair work. Mr.khalid is paid salary every month. They sell mostly merchandise to the retailers and sell seldom to the customers directly. They purchase electronics goods from suppliers who normally provide net/45 discount to them and payments dues are paid through checks regularly. Moreover, they sell merchandise both on cash and credit basis. They usually offer cash discounts to their customers to for the early payments. They advertise for promotion of their business in the local TV and magazines and newspapers for which they pay money by checks. Mr.Ahmed and Mr. Anwar withdraw money every month from the business. They do have Mr.Ali as a Book keeper to maintain entire Accounting records through general journal and ledgers to prepare financial reports However, Mr.Ali is not efficient enough to do book keeping. The management is very much concerned for the inefficiency in Accounting. As a result, they appointed two more book keepers to support Mr.Ali but they could not succeed. Assume you are expert in Accounting, suggest the above management 1 (a) Why additional book keepers did not help them and what changes they should do in Accounting system in your words (3marks) 1 (b) Suggest them what are the special journals they should have and state each journal with how many columns would have. (Own Words) (3 marks) 1(c) Guide them about what type of subsidiary ledgers to be prepared and control accounts are to be drawn and control accounts uses to the management. (In Your Words) (4 marks) 2. Mr. Hussain has been pursuing Mechanical Engineering Course in the Salalah College of Technology, Dhofar at second year. He is interested in starting part time business so as to enhance his income. He started a super market in his area with own and borrowed capital. He purchased all merchandises form Local whole sale distributor and sold to the customers in cash basis only. The business was progressing well but he himself managed the book keeping which he later finds very difficult in preparing financial reports. He prepared financial statements for the first year such as Income statement and financial position statement. But it did not disclose accurate results. The sales gradually rising in due course. As he could not value his inventories, he did not find right amount of net profit and value the assets. Eventually, Mr.Hussain wants to consult Mr.Shihab who is expert in accounting to know about inventory valuation. 2a) Assume you are Mr.Shihab, how would you guide Mr.Hussain that different of types inventory methods for valuing ending inventory and cost of goods sold are available. (In Your Own Words) (3marks) 2(b) Suggest him the effect of choosing different inventory valuations in your own words. (3 marks) 2(c) Advise him what are the changes to be made while passing journal entries in the books of seller and purchaser books under perpetual system.

1. Mr.Ahmed and Mr. Anwar have been doing whole sale Electronics business in the Dhofar region for the past 10 years. They undertake repairs servicing as well, for which they appointed Mr. Khaleed to do the repair work. Mr.khalid is paid salary every month. They sell mostly merchandise to the retailers and sell seldom to the customers directly. They purchase electronics goods from suppliers who normally provide net/45 discount to them and payments dues are paid through checks regularly. Moreover, they sell merchandise both on cash and credit basis. They usually offer cash discounts to their customers to for the early payments. They advertise for promotion of their business in the local TV and magazines and newspapers for which they pay money by checks. Mr.Ahmed and Mr. Anwar withdraw money every month from the business. They do have Mr.Ali as a Book keeper to maintain entire Accounting records through general journal and ledgers to prepare financial reports However, Mr.Ali is not efficient enough to do book keeping. The management is very much concerned for the inefficiency in Accounting. As a result, they appointed two more book keepers to support Mr.Ali but they could not succeed. Assume you are expert in Accounting, suggest the above management

Q: 1 (a) Why additional book keepers did not help them and what changes they should do in Accounting system in your words (3marks) 1 (b) Suggest them what are the special journals they should have and state each journal with how many columns would have. (Own Words) (3 marks) 1(c) Guide them about what type of subsidiary ledgers to be prepared and control accounts are to be drawn and control accounts uses to the management. (In Your Words) (4 marks) 2. Mr. Hussain has been pursuing Mechanical Engineering Course in the Salalah College of Technology, Dhofar at second year. He is interested in starting part time business so as to enhance his income. He started a super market in his area with own and borrowed capital. He purchased all merchandises form Local whole sale distributor and sold to the customers in cash basis only. The business was progressing well but he himself managed the book keeping which he later finds very difficult in preparing financial reports. He prepared financial statements for the first year such as Income statement and financial position statement. But it did not disclose accurate results. The sales gradually rising in due course. As he could not value his inventories, he did not find right amount of net profit and value the assets. Eventually, Mr.Hussain wants to consult Mr.Shihab who is expert in accounting to know about inventory valuation.

Q2: a) Assume you are Mr.Shihab, how would you guide Mr.Hussain that different of types inventory methods for valuing ending inventory and cost of goods sold are available. (In Your Own Words) (3marks) 2(b) Suggest him the effect of choosing different inventory valuations in your own words. (3 marks) 2(c) Advise him what are the changes to be made while passing journal entries in the books of seller and purchaser books under perpetual system.