subject: Principle of accounting

solve only task 3

step by step

(10 Marks) 2) Task 2 CASE STUDY A. New business started on January 2021 by Mr. Sultan. The business named, H&A Engineering Service sells all kinds of items which are related to the contraction filed. During the month of January 2021, the following financial transactions occurred: Transaction details January 2021 1 2 4 6 7 8 Mr. Sultan invested OMR 305,000 to start the business Paid rent - OMR 5,000 Purchased office furniture for the business from A&H Furniture worth OMR 13,000 on credit Purchased electronic goods for cash worth OMR 12,000 Purchased office computer and software for business worth OMR 4,000 for cash Purchased electronic goods on credit from Aljazeera Traders worth OMR 14,000 Sold goods for cash - OMR 10,000 Paid A&H Furniture OMR 10,000 for office furniture purchased on 4 Jan Paid Aljazeera Traders OMR 4,000 for electronic goods purchased on 8th Jan Mr. Sultan withdrew OMR 4000 for his personal used Paid Aljazeera Traders OMR 10,000 for electronic goods purchased on 8th Jan Paid Insurance expenses - OMR 500 12 17 18 24 30 31 Requirements: Now review the case study above, respond to the following requirements on your own. Then, Record each of the above transactions in general journal. Date, Particulars, Explanations, Reference and amounts in OMR should be provided. Use the following account titles to journalize the transactions H&A Engineering Service: (40 marks) b. Capital f. Purchases a. Cash e Accounts Payables i. Accounts Receivables C. Rent 8. Computer & Software k. Drawings d. Furniture h. Sales j. Salaries I. Insurance expenses Task 3: A. Prepare the end-of-month report to account for the incomes and expenses of H&A Engineering Service under Cash basis accounting. ( 15 marks) B. Discuss and explain in details the steps of preparing Accrual basis accounting with one example and what are the advantage and disadvantage of using accrual accounting based? support the discussion with relevant literature. ( 20 marks)