Question Analyse these transactions using accounting equation 12+ 3+3 -8 Marks Cash - 200000 Bank 240 000 Debtors - 100 000 Building - 160 000 Land- 100 000 Overdraft 100 000 Credito 160 000 Notes Receivables160000 Notes Payable 120 000 Loan-240 000 Capital Prepare the balance sheet and find out the capital Balance sheet The company bought furniture for 240 000 paid 45% on credit and the rest by cheque. Balance sheet The company sold furniture for 5 160 000 received 25% on credit and the rest by cheque Balance sheet Question. Journalize the following transactions in General Journal. [1 X 18 - 18 Marks On 1" January 2019 the owners started their business with 5125 000 deposited into the company's bank account. On 2 January the company sold Land for $ 60 000 by choque On 3 January the company sold Cars for $20 bon credit. On 4 January the company paid Salaries S10 000 by cheque. On 5 January the company received Rent Revenue 55000 by cheque On 6 January the company received 575 000 loan from the Sohar bank and deposited into the company bank account On 7 January the company bought and costs S1000000 credit On 8 January the company bought Cars for S45 000using cheque On 9 January the company bought Goods for 560 000on credit On 10 January the company received Service revenues 5000 Cash On 11 January the company received Interest revenue $ 7500 by cheque On 12 January the company paid Rent Expenses S 5000 Cash On 13 January the company bought Goods for S 40000 by cheque On 14 January the company sold Goods for S 110 000 by cheque On 15 January the company sold Goods for $ 50 000on credit On 16 January the company paid Phone expenses for S7500 by cheque On 17 January the company received Rent revenues 5 000 by cheque On 18 January the company paid Interest expenses 5000 by cheque Question 3. Complete the following Accounting Equation. [1 X 4 = 4 Marks S.No. Assets Liabilities Capital 1. 200000 ........ 120 000 2. 750 000 350 000 3 ......... 230 000 70 000 4.500 000 100 000 Question 4. Evaluate the following as True or False [1 X 10 = 10 Marks] 1. Public companies in the United States must follow GAAP when their accountants compile their financial statements. [ ] 2. GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information 3. GAAP aims to improve the clarity, consistency, and comparability of the communication of non financial information [] 4. Internationally, the equivalent to GAAP in the United States is referred to as international financial reporting standards (IFRS). [ ] 5. IFRS is followed in over 120 countries, excluding those in the European Union (EU). [ ] 6. Understanding GAAP: GAAP helps gover the world of accounting according to general rules and guidelines. It attempts to standardize and regulate the definitions, assumptions, and methods used in accounting across all industries. [] 7. The ultimate goal of GAAP is ensure a company's financial statements are complete, consistent, and comparable. This makes it difficult for investors to analyze and extract useful information from the company's financial statements, including trend data over a period of time. 8. An income statement: presents the revenues and expenses and resulting net income or net loss for a specific period of time. 9. A Balance Sheet: summarizes the changes in owner's equity for a specific period of time.[ ] 10. An owner's equity statement: reports the assets, liabilities, and owner's equity at a specific date
