Learning outcomes to be achieved by completion of the assessment 1. Record income and receipts from credit customer, purchases, expenditures and payments to supplier 2. Differentiate between accrual and cash basis accounting CASE STUDY Mr. Gais started the business during the month of Feb 2020. The business named Majestic Computers sells all kinds of electronic items including laptop computers, printer, scanner, desktop computers etc. During the month of Feb 2020, the following financial transactions occurred: Feb 2020 Transaction details 3 5 Mr. Qais invested OMR 25,000 to start the business Paid rent OMR 1000 Purchased office furniture for business use on credit from Fahmy Furniture worth OMR 5,000 Purchased electronic goods for cash worth ONR 10.000 Purchased office computer and software for business worth OMR 2.000 for cash Purchased electronic goods on credit from Arabia Traders worth OMR 10.000 Sold goods for cash-OMR 3,000 Sold goods for credit to MM Mobile Shop worth OMR 20,000 Paid Fahmy Furniture OMR 5,000 for office furniture purchased on Feb Paid Arabia Traders OMR 5,000 for electronic goods purchased on 10 Feb 10 12 15 17 BUSSB 1004 QP Page 1 of 7 Principles of Accounting (BUSS 1004) - Spring 20-CW1 - All GP 20 22 24 Paid salaries OMR 600 Paid Arabia Traders OMR 4,000 for electronic goods purchased on 10 Feb withdrew drawings OMR 500 Received cash from MM Mobile Shop OMR 3,000 for sales mentioned on 15 Feb Paid Arabia Traders OMR 1,000 for electronic goods purchased on 10 Feb Paid Insurance expenses OMR SOO 26 28 29 Requirements: Now that you have reviewed the case study above, respond to the following requirements on your own Q1. Record each of the above transactions in general journal including the explantionarration. Use the following account titles to journalize the transactions Majestic Computers (50 marks a Cash b. Capital Rent Furniture e Accounts Payables Purchases & Computer & Software Sales Accounts Receivables salaries Drawings Q2. Prepare the end-of-month report to account for the incomes and expenses of Majestic Computers under Gash basis accounting (15 marks Q3. Prepare the end-of-month report to account for the incomes and expenses of Majestic Computers under Accrual basis accounting (15 marks) Q4. Discuss FIVE differences between cash and accrual accounting based on review of relevant literature. The student may identify and discuss by giving examples for both cash basis and accrual basis of accounting from the case study provided above. (15 marks - word range: 350-400