Question
On October 1, 2018, Mohammad deposited RO 10,000 in Muscat Bank for six months with 10% annual interest rate. On 31/3/2019, Mohammad asked the bank
On October 1, 2018, Mohammad deposited RO 10,000 in Muscat Bank for six months with 10% annual interest rate. On 31/3/2019, Mohammad asked the bank to transfer the deposited amount and its interest to his current account. In addition, the bank gave Mohammad airline ticket worth RO 100 at the time of deposit as a gift. 31/12 is the end of bank financial year. Accounting system does not require the separation between recording the interest at accrual time and payment time. Required:
1. Record the journal entries on 01/10/2018.
2. Record the journal entries on 31/12/2018.
3. Record the journal entries on 31/03/2019.
4. Record the journal entries on 31/12/2019.
5. Record the journal entries on 01/05/2019.
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