Assume that Hider Darwesh Company purchased a Machine for OMR 25000 on 31st December 2013.The company charging OMR 3125 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 12500 and the company decided to sell this equipment for OMR 13000 on 31st Mar2018. Findout the profit or loss on sale of Machine and pass necessary journal entry in the books of Hider Darwesh Company.

a. Dr Cash A/C 13000 Dr Accumulated depreciation A/c 13281and Cr Profit on sale of machine 1281 Cr Machinery A/C 25000

b. None of the given options

c. Dr Cash A/C 13000 Dr Accumulated depreciation A/c 13300and Cr Profit on sale of machine 1300 Cr Machinery A/C 25000

d. Dr Cash A/C 13000 Dr accumulated depreciation 13000 and Cr Profit on sale of machinery OMR 1000 Cr Machinery A/C 25000

Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of component of the purchase is given below:

Asset

Fair Market value

Land

85000

Building

155000

Equipment

460000

Calculate the amount at which each of the above components shall be recognized on purchase date and write the journal entry for recording purchase transaction.

a. None of the given options

b. Dr Cash A/C OMR 800000 and Cr land A/c 97120 Cr Building A/C 177120 Equipment A/C 460000

c. Dr Land Ac OMR 97120 Dr Building A/C 177120 Dr Equipment A/C 525760 and Cr Cash A/C OMR 800000

d. Dr Land Ac OMR 85000 Dr Building A/C 155000 Dr Equipment A/C 460000and Cr Cash A/C OMR 700000

Oman Drydock Company purchased a site near Barka for OMR 25000. In addition to the purchase price the company agreed to pay OMR 3000 of unpaid tax (outstanding) on the property. There was an old construction on the site on which company spent OMR5000 for its removal and the company received the additional income of OMR 1500 from sale of scrap of the old construction. The company also paid OMR 500 agents commission and OMR 1500 legal and registration charges. Find out the cost of the asset.

a. OMR 28000

b. OMR 25000

c. OMR 35000

d. OMR 33500

Assume that Oman Gulf Company S.A.O.C.(Muscat Branch) purchased the raw materials of OMR 3000 and issued the check to the supplier. The accountant immediately entered in the cash book. After 3 days the company received the bank statement in which the check issued to the supplier not yet deducted. Therefore while preparing the Bank Reconciliation statement, what adjustment the accountant will do? Choose the correct answer from the following given options.

a. Add OMR 3000 to the cash book balance

b. Less OMR 3000 from the cash book balance

c. Less OMR 3000 from the Bank statement balance

d. Add OMR 3000 to the bank statement balance

Assume that Abdul Baari LLC acquiring a new truck for OMR 45000. In exchange, the company pays OMR 32000 cash and old truck. The old truck originally cost OMR 40000 and has accumulated depreciation of OMR 25,000, which implies a OMR 15,000 book value at the time of exchange. From the following given options identify the correct journal entry for profit or loss on exchange of old truck with new truck.

a. None of the given options

b. Dr New Truck A/C OMR 47000 and Cr Cash A/c 32000 Cr Old truck A/c 15000

c. Dr New Truck A/c OMR 45000 Dr Loss on exchange of truck OMR 2000 Dr Accumulated depreciation on old Truck OMR 25000 and Cr cash A/c 32000 Cr Old Truck A/C OMR 40000

d. Dr New Truck A/C OMR 45000 Dr Loss on exchange of old Truck OMR 2000 and cash A/c 32000 Cr old Truck A/c OMR 15000