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based in Muscat. After gaining enough experience and knowledge from the company, he has decided to resign at the end of the year 2019 and

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based in Muscat. After gaining enough experience and knowledge from the company, he has decided to resign at the end of the year 2019 and start his own courier service business in his home town at ibri in the beginning of the year 2020. The following are the transactions occurred in the first month of his business Al Kalbani & Partners. January 1. Mr. Kalbani introduced RO.20,000 as initial investment to start his new business 2. Business purchased a computer for RO.200 and paid cash 3. Business obtains a loan of RO 25,000 from a bank in ibri 5. Business purchased a car for credit from OTE dealers for RO.12,000, paid cash RO.3.000 immediately and balance agreed to pay later 8. Purchase office furniture for RO.1,000 and paid cash immediately 12. Business provided legal service to a local customer and collected cash R0.900 15. Business paid insurance for the whole year in advance RO.850 18. During the month Business camed RO. 1.100 from a customer for providing legal service, collected cash RO.200 immediately but the balance the customer agreed to pay later. 20. Business provided legal service to an international customer and collected cash R0.1,000 24. Business paid salary to all office staff totaled RO 2.500 27. Paid the balance full amount to OTE dealers for the car purchased in the beginning of the month 28. Business paid RO.600 as rent to the landlord 31. Business received R0.900 from a customer, who previously invoiced for the service for credit. Question 3: You are required to journalize the above transactions of Al Kalbani & Partners for the month January 2020, using an appropriate format. Question 4: You are asked to Post all the above transactions Al Kalbani & Partners from the journal to respective ledger accounts and find the balances at January 31, 2020. Question 5: a) Prepare the unadjusted trial balance at January 31, 2020 for Al Kalbani & Partners. b) Imagine,Mr. Kalbani is currently in dubai for a business meeting and his daughter goes to his office in ibri and ask the staff to transfer RO.2500 to his father bank account for some personal purpose. You are required to discuss why this transaction is to be accounted for when the business belongs to the proprietor? And in what manner this transaction is to be recorded and how it help the accountants to give a correct accounting information to the users for decision making

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