BAAC 1102 HCT Prepare Income Statement And Statement of Owners Equity Worksheet see file attached………………………………………………….

BAAC 1102 HCT Prepare Income Statement And Statement of Owners Equity Worksheet see file attached…………………………………………………………………………. HIGHERCOLLEGE OF TECHNOLOGY
DEPARTMENT: BUSINESS STUDIES
Final Examination:
Assignment Based Assessment 2
Semester: II
A. Y.: 2019 / 2020
Diploma I Year
th
Start Date: 04 June
Time: 07: 00 pm
Due Date: 06th June
Student Name
Time: 07:00 pm
Ritham saleh al-toobi
Student ID
Specialization
Accounting
Section
Level
Diploma Second Year
Course Name
Principles of Accounting 1
Course Code
BAAC 1102
For official Use Only
Question No.
Max. Marks
1
2
3
4
5
6
7
8
9
10
Grand Total
Marks
1
1
2
1
6.5
7
6.5
7
10
8
Obtained
Marks
Question No.
1
2
3
4
5
6
7
8
9
10
50
Max.
Marks
1
2
1
1
6.5
7
6.5
7
10
8
50
First Marker:
Second Marker:
Date:
Date:
Obtained
Marks
Guidelines for Students to Submit the Assignment:
1)
2)
3)
4)
5)
6)
The final assessment for semester 2, 2019-20 will be done through comprehensive assignment for a
maximum of 50 marks. The schedule of the final assessment is available in the college website.
https://www.hct.edu.om/about/the-college/announcements/final-assessment-timetable-041620
All the students are expected to have only one assignment at one time. In case, if the students have more
than one assignment on the same day, please report to the exam committee through the following mail id.
exam.bus@hct.edu.om as soon as possible.
All students are given 48 hours to complete and submit each assignment from the day, date and time the
assignment is uploaded. Students are advised not to wait till the last moment of the deadline to submit the
assignment.
The students can check the assignment anytime and any number of times from the opening of the
assignment. The answer to the assignment need to be uploaded in e-learning within 48 hours.
The answer to the assignment can be uploaded only one time. No requests for resubmission of the
assignment will be entertained.
The students may contact the following mail Ids if they face any difficulties while related to final
assignment.
a. For Academic related
support :
b. Business Courses
f.
g. anand.kalimani@hct.edu.om
h. karri.krishna@hct.edu.om
i. ramil-ecot@hct.edu.om
c. For Technical Writing 1
j. khulood.aiadi@hct.edu.om
d. For Technical Writing 2
k. jocelyn.balili@hct.edu.om
e. For
Technical
Communication
l. For issues related to email
accounts
and
Microsoft Teams
n. Any issues related to ELearning Moodle
p. Any
other
IT
Troubleshooting
m. office365support@hct.edu.om
o. support.elearning@hct.edu.om
q. helpdesk2@hct.edu.om
7)
Students may contact their respective lecturer through college email (within the 48-hour period given) if
they have any doubts and clarifications on the assignments.
8) Students should be aware that this assignment is an independent assessment. Students are not allowed to
get help from any other person during the assessment period.
9) Students assignment will be checked for plagiarism through Turnitin software. This assignment will be
assessed as per the College Assessment Policy. Student will be investigated in case of plagiarism as per
the College policy and procedures. The maximum acceptable similarity index is 25%.
10) In case the students face any technical issues regarding the submission of assignment, the answer to the
assignment can be mailed to the concerned lecturer within the 48-hour period using college email.
2. 11)Any assignment submitted after the 48-hour period will not be considered for evaluation.
3. 12)The assignment should be submitted only with the file in MS Word document. No other format is
acceptable at all (e.g. pictures, JPEG, PDF, etc).
4. 13)The students need to answer the assignment in the prescribed number of words as mentioned in the
assignment.
5. 14)The students need to follow the following format while preparing the assignment :
i. Font Style: Times New Roman
ii. Font Size: 12 point for body and 14 point for Headings
iii. Line Spacing: 1.5
iv. Margin: 2.54cm (One inch) on all the sides
v. Page Number : At the bottom right hand corner of each page
vi. Colour: All words should be in black colour
6. 15)Students who will fail to submit their assignment as per the deadline given are required to make an
online appeal along with the valid excuses as the guidelines which will be announced through the
college website or e-learning portal within three days from the date of submission deadline.
Instruction: Answer all the questions with workings in detail.
1. Ms. Sara is appointed as the accountant of ABC LLC Muscat. She is responsible for all the accounting
process of the company. The company deals with manufacturing of plastic products in Oman and
distributing across GCC countries. The company has a turn over of 2.3 Million rial last year. You are
required to identify the basic accounting activities that Ms. Sara must do to prepare financial statements.
(1 Mark )
2. You are a business consultant in Muscat. You help your clients for setting up their business organization
according to their requirements. Last week one of your client Mr. Salim requested you to advise him to start
a business of manufacturing furniture. Mr. Salim is the contributing whole capital for the company RO
12500 and he would like only recruit some laborer’s to work in his factory.
As a consultant, what form of organization would you suggest to Mr. Salim Give reason for your answer.
( 1 mark)
3. Mr. Ahmed purchased a machinery from UK last year by paying RO. 12500. Due to some unforeseen
events, the delivery of machines got delayed till last month. By the time the vendor increased the price of
machinery from RO 12,500 to RO 15,000 due to high demand. Mr. Ahmed now asked his accountants to
record RO 15000 in the books of account as the cost of the machinery.
a. Do you think any of the basic accounting principles support Mr. Ahmed’s decision to record the RO.
15000 as the cost of machinery? Give reason for your answer
(1 mark)
b. Suppose Mr. Ahmed purchased the asset by taking a loan, how it is going to affect the asst, liability and
equity of the company? Give reason for your answer.
(1 Mark)
4. Ms. Maatir started her own beauty salon last year. Her salon is very famous in that area and she managed to
make a profit of RO 2500 every week. She uses RO 1000 every week to pay salaries to the staff and RO 500
for buying material. She also takes RO 500 for her family expenditure. She records all the expenses in her
business accounts as she only manages the business.
You are required to identify whether she can record all these transaction in her business account or not.
Justify your answer.
(1
Mark)
Use the Following information for the Question Numbers 5 to 10.
Mr. Mazin started a business in the month of March 2020. He has to prepare a financial statement at the end of
the month for review of the operation of his business. The following transactions are given below. You are
required to help Mr. Mazin to prepare his financial statement.
March 1. Invested a cash of RO 50,000 and land worth RO 20,000 to start a new business
March 2. Purchased machinery and other equipment’s on account RO 15,000
March 3. Purchased office supplies for cash RO 1,500
March 3. Purchased insurance policy for the building RO. 960 for one year.
March 4. Decided to recruit a helper next month.
March 8. Provided services to a client RO 2,000 and received 60% of the amount and remaining after two
months
March 10. Service provided to another client Mr. Salim RO 1,200 but he agreed to pay later.
March 12. Purchased Office supplies for cash RO 5,000
March 14. Mr. Mazin agreed to purchase a new machinery for RO 5,800 in the month of December 2020.
March 15. Received remaining cash from the client services provided on March 8th .
March 17. He purchased a new car RO 12,000 for personal use with his own money.
March 17. He purchased a new television for RO 889 with the money given by his father.
March 18. Provided services to another client for RO 500 and he paid only RO. 150 remaining, he agreed to pay
next month.
March 22. Purchased a packing machine and returned it back on the same day as it was defective OMR 299.
March 25. Paid cash RO. 5000 for the machinery purchased on March 2nd .
March 28. Took money from the business for personal use RO 1,200
March 30. Received amount from the customer whose service is provided on March10th..
March 31. Paid wages for the month RO 3000
March 31. Planned to purchase additional office supplies for RO 4,580 next month.
March 31. Received water and electricity bill for the month RO. 89.
From the above transaction you are required to prepare:
5.
6.
7.
8.
9.
Analyze the transaction by using accounting equation. (0.5 Mark*13 = 6.5 marks)
Prepare the Journal entries for the month of March. (0.25 for each account= 7 marks)
Post the entries and calculate the balances. (0.5 Mark*13 = 6.5 marks)
Use the balances to prepare the unadjusted trial Balance. (7 marks)
After completing the Unadjusted trial balance use the below information to prepare the Adjusted Trial
Balance. (10 Marks)
Additional information
a.
b.
c.
d.
e.
The revenue earned but not recorded at the end of the month is RO 2,000
Insurance expense for the month RO 80
The machinery has a useful life of 5 years and a residual value of RO 500.
Office supplies at the end of the month 3200.
Depreciation on all fixed asset to be provided 6% of the asset value.
10. Use the adjusted Trial Balance to prepare Income statement, statement of owners’ equity and statement
of financial Position. (8 marks)

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