Nizwa City has established an agency fund to account for employees share of health insurance, which is deducted from the employees monthly salary and then forwarded to the insurance company on a quarterly basis. For this purpose, a total of OMR 7,000 was deducted from the employees salary, and OMR 5,000 was paid to the insurance company in 2019. The remaining OMR 2,000 will be paid to the insurance company in the first quarter of 2020. Considering the above information of Nizwa city agency fund, the appropriate journal entry to record insurance amount from the employees salaries shall be:

a-Dr: Due to insurance company OMR 5,000 and Cr: Cash OMR 5,000

b-Dr: Cash OMR 5,000 and Cr: Due to insurance company OMR 5,000

c-None of them

d-Dr: Cash OMR 7,000 and Cr: Due to insurance company OMR 7,000

2-

The Nizwa electricity service unit maintains an enterprise fund for its services. The unit billed and collected OMR 24,000 in electric line connection and installation fees from a local real estate developer. The actual cost of the connections was paid in cash OMR 20,000. The journal entry to record collection of connection fees.

a-Dr: Cash 20,000, Dr: Line connection fees- capital contribution 4,000 and Cr: Line connection fees- operating revenue 24,000

b-Dr: Cash 24,000 and Cr: Line connection fees- operating revenue 20,000 Cr: line connection fees- capital contribution 4,000

c-Dr: Cash 24,000 and Cr: Line connection fees- operating revenue 24,000

d-Dr: Cash 24,000 and Cr: Line connection fees- operating revenue 4,000 Cr: Line connection fees- capital contribution 20,000