Ali, Mohammed and Abdullah started a business. They agreed to share responsibilities, skills, Profits and losses. Ali invested RO 10,000, Abdullah invested RO 12,000 and Mohammed invested RO 8000 in the business. They acquired the following : Machine worth RO 2000, Furniture worth RO 1000, Supplies worth RO 500, Motor Car worth RO 2000. They also have bills payable worth RO 50, Salaries payable RO 200, rent payable RO 50 and the business also has a long term loan of RO 5000. The business had Insurance expense of RO 500 and Utility expense of RO 200. Answer the following 3 questions based on the above case 1-The type of the business is represented in the above case? Corporation Partnership Sole Proprietorship Single Business Owner 2-If the partners decided to invest ( bring in capital in the form of cash) 1000 OMR more in the business , which account will you Debit in this transaction? Equity A/c Loan A/c Capital A/c Cash A/c 3-If the partners decide to Withdraw 200 OMR each for personal use from the amount they have invested , which account will you Debit as an accountant? Cash A/c Drawings A/c Dividend A/c Profit and Loss A/c
Ali, Mohammed and Abdullah started a business. They agreed to share responsibilities, skills, Profits and losses. Ali invested RO 10,000, Abdullah invested RO 12,000 and Mohammed invested RO 8000 in the business. They acquired the following : Machine worth RO 2000, Furniture worth RO 1000, Supplies worth RO 500, Motor Car worth RO 2000. They also have bills payable worth RO 50, Salaries payable RO 200, rent payable RO 50 and the business also has a long term loan of RO 5000. The business had Insurance expense of RO 500 and Utility expense of RO 200. Answer the following 3 questions based on the above case 1-The type of the business is represented in the above case? Corporation Partnership Sole Proprietorship Single Business Owner 2-If the partners decided to invest ( bring in capital in the form of cash) 1000 OMR more in the business , which account will you Debit in this transaction? Equity A/c Loan A/c Capital A/c Cash A/c 3-If the partners decide to Withdraw 200 OMR each for personal use from the amount they have invested , which account will you Debit as an accountant? Cash A/c Drawings A/c Dividend A/c Profit and Loss A/c
Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation
Section: Chapter Questions
Problem 47P
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Question
Ali, Mohammed and Abdullah started a business. They agreed to share responsibilities, skills, Profits and losses. Ali invested RO 10,000, Abdullah invested RO 12,000 and Mohammed invested RO 8000 in the business.
They acquired the following :
Machine worth RO 2000,
Furniture worth RO 1000,
Supplies worth RO 500,
Motor Car worth RO 2000.
They also have bills payable worth RO 50, Salaries payable RO 200, rent payable RO 50 and the business also has a long term loan of RO 5000. The business had Insurance expense of RO 500 and Utility expense of RO 200.
Answer the following 3 questions based on the above case
1-The type of the business is represented in the above case?
Corporation
Partnership
Sole Proprietorship
Single Business Owner
2-If the partners decided to invest ( bring in capital in the form of cash) 1000 OMR more in the business , which account will you Debit in this transaction?
Equity A/c
Loan A/c
Capital A/c
Cash A/c
3-If the partners decide to Withdraw 200 OMR each for personal use from the amount they have invested , which account will you Debit as an accountant?
Cash A/c
Drawings A/c
Dividend A/c
Profit and Loss A/c
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT