7Assume that the total assets, liabilities, and equity of the company is OMR 75000, OMR 30000 and OMR 45000 respectively. The company purchased OMR 6000 raw materials and paid OMR 3500 immediately. As per the agreement, remaining amount to be paid on 30th day from the date of purchase. Identify the effects of above transaction on different components of balance sheet.a.Assets of the company decrease by OMR 3500 and liabilities of the company increase by OMR 2500b.Assets of the company increase by OMR 3500 and liabilities of the company increase by OMR 2500c.Assets of the company increase by OMR 6000 and liabilities of the company increase by OMR 2500d.Assets of the company increase by OMR 2500 and liabilities of the company increase by OMR 2500

If cash is paid for purchase of inventory, then inventory account is debited and Cash is credited.…

Answered: 7 Assume that the total assets,…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.23E: Adjustment for depreciation The estimated amount of depredation on equipment for the current year is...

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Assume that the total assets, liabilities, and equity of the company is OMR 75000, OMR 30000 and OMR 45000 respectively. The company purchased OMR 6000 raw materials and paid OMR 3500 immediately. As per the agreement, remaining amount to be paid on 30th day from the date of purchase. Identify the effects of above transaction on different components of balance sheet.

Assets of the company decrease by OMR 3500 and liabilities of the company increase by OMR 2500

Assets of the company increase by OMR 3500 and liabilities of the company increase by OMR 2500

Assets of the company increase by OMR 6000 and liabilities of the company increase by OMR 2500

Assets of the company increase by OMR 2500 and liabilities of the company increase by OMR 2500

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