Murmool Logistics Company (SAOG)

Trail Balance for the year ending 31 Dec 2019

Dr

Cr

OMR

OMR

Ordinary share capital (OMR 1 Shares)

200,000

Equipment at cost

105,000

Depreciation on equipment

23,750

Investments on securities

82,500

Furniture at cost

250,000

Depreciation on furniture

37,500

Inventories as at 1 Jan 2019

12,000

Revenue

275,000

Purchases

178,750

Dividends paid

21,750

Dividends received

7,000

Retained earnings

48,750

Distribution costs

26,250

Trade receivables

21,250

Trade payables

15,500

Administration costs

24,750

Share premium

75,000

Cash and cash equivalents

20,250

10% Debentures

62,500

Interest paid

2,500

745,000

745,000

Adjustments:

1. The taxation due on the companys profits for the year is OMR 19,000

2. Distribution costs accrued at 31 December 2019 is OMR 2,000

3. Administration costs prepaid at 31 December 2019 is OMR 1,000

4. Only OMR 2,500 of debenture interest had been paid by the end of the year

5. Inventory in trade at the year-end totalled OMR 15,750

Ahmed and Mohammed Partnership Firm

Trial Balance for the year ending 31 December 2019

Dr

Cr

OMR

OMR

Capital - Ahmed

16,000

Capital - Mohammed

8,000

Stock (inventory)

10,000

Vehicles (cost)

2,000

Vehicles (depreciation provision)

800

Purchases

60,000

Rent, rates and insurance

4,000

Land and buildings

20,000

Sales

80,000

General expenses

4,000

Wages

5,200

Debtors (accounts/trade receivables)

8,000

Creditors (accounts/trade payables)

4,000

Discount received

400

Discount allowed

200

Fittings (cost)

1,000

Fittings (depreciation provision)

200

Cash

1,000

Current account - Ahmed

4,000

Current account - Mohammed

2,000

115,400

115,400

Adjustments:

1. Closing stock is valued at OMR 12,000

2. Rent, rates and insurance of OMR 100 is prepaid at the end of the year.

3. Wages of OMR 40 are accrued at the end of the year.

4. Depreciation is to be taken;

(a) Vehicles 20% per annum on cost

(b) Fittings 10% per annum on cost

5. Salaries of the Partner:

(a) Ahmed: OMR 2,000

(b) Mohammed: OMR 1,600

6. Profit should be shared equally between the partners

7. Interest allowed on capital is 10% per annum

8. The current account opening balance as on 1 January 2019 was;

(a) Ahmed: OMR 6,000 less drawings of OMR 2,000

(b) Mohammed: OMR 4,000 less drawings of OMR 2,000

Pass Merit Distinction LO2 Prepare final accounts for sole-traders, partnerships and limited companies in accordance with appropriate principles, conventions and standards P3 Prepare final accounts from given trial balance. M2 Make adjustments to balances of sum accounts for example, accruals, depreciation and prepayments before preparing the final accounts. D2 Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content. P4 Produce final accounts for a range of examples that include sole-traders, partnerships or limited companies. Pass Merit Distinction LO2 Prepare final accounts for sole-traders, partnerships and limited companies in accordance with appropriate principles, conventions and standards P3 Prepare final accounts from given trial balance. M2 Make adjustments to balances of sum accounts for example, accruals, depreciation and prepayments before preparing the final accounts. D2 Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content. P4 Produce final accounts for a range of examples that include sole-traders, partnerships or limited companies