Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Mohammed started his book stores with an Investment of RO 20,000 and took a Loan of RO 30,000 from HSBC Bank. In the year

Mr. Mohammed started his book stores with an Investment of RO 20,000 and took a Loan of RO 30,000 from HSBC Bank. In the year 2019, he could able to achieve total Sales of RO 95,165 and Purchased books worth RO 55,455. Where in a Trade Debtors of RO 20,985 and a Trade Creditors of RO 19,400 is left due at the yearend. Mohammed Received Commission of RO 6,525 and Allowed Discount of RO 2,510 on the sales operations during the year. He purchased Warehouse worth RO 25,000, Book Binding Machine for RO 45,350 and Furniture worth RO 12,665 before started his business. He paid Salaries worth RO 5,000 and Shop Maintenance Charges worth RO 3,365 for the year 2019. At the end of the year he had Liquid Cash in his counter worth RO 760.

Which account will be depit and which account will be credit?

Step by Step Solution

3.46 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Debit Credit Capital 20000 Loan 30000 Sales 95165 Pu... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

11th Edition

9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895

More Books

Students also viewed these Accounting questions