Question
Nizwa municipality general fund issues purchase orders of RO 530,000 to vendors for office supplies. Which of the following entries should be made to record
Nizwa municipality general fund issues purchase orders of RO 530,000 to vendors for office supplies. Which of the following entries should be made to record this transaction?
a.
Budgetary fund balance-
reserved for encumbrances (Debit) 530,000
Encumbrances (Credit) 530,000
b.
Encumbrances (Debit) 530,000
Budgetary fund balance reserved for encumbrances (Credit) 530,000
c.
Expenditures (Debit) 530,000
Vouchers payable (Credit) 530,000
d.
Expenses(Debit) 530,000
Vouchers payable (Credit) 530,000
2)
From the given information, ascertain the amount of salary to be debited in the Income and Expenditure Account for the year ending 31-12-2019.
Salary paid during the year 2019 3700 RO
Salary unpaid on 1-1-2019 540 RO
Salary paid in advance on 31-12-2019 320 RO
Salary unpaid on 31-12-2019 480 RO
Salary paid in advance on 1-1-2019 410 RO
a.
3550 RO
b.
3410 RO
c.
3670 RO
d.
3730 RO
3)
The government makes appropriations of RO 150,000 to Muscat School for the month of January 2019. During the month the following transactions occurred:
Salary paid RO 35,000
Purchase orders were placed for office supplies RO 49,000
Office supplies were received with a voucher for RO 45,000
An amount of RO 15,000 was transferred to Debt service fund.
The unreserved fund balance at the end of the period is:
a.
65,000
b.
55,000
c.
70,000
d.
95,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started