Analyze these transactions and prepare a table to show their effect on the accounting equation. Mr. Rasool started a courier service in Ibri, Fast Couriers, on January 1, 2020. The following transactions occurred during the month of January 2020. January 1 Rasool invested OMR 15,000 in the business. January 3 The business borrowed OMR 5,000 from Bank Nizwa, to be repaid after 3 years. January 4 Bought a delivery van OMR 7,000 from Fine Automobiles. Rasool paid OMR 2,000 and the balance will be paid later. January 5 Paid insurance for full year OMR 1,000. January 7 Billed a customer OMR 500, for delivery service and received cash. January 10 Purchased packing materials (supplies) for OMR 500 on account. January 12 Received invoice from Shelly Autocare OMR 250, for the repair of delivery van. Business agreed to pay the cash later. January 14 Earned OMR 1,000 on a customer order for an overseas delivery, but not received the cash. January 15 Rasool took OMR 300 for his personal expenses. January 18 Provided delivery service for a friend, Mr. Hamed, for OMR 300. Hamed paid OMR 180 immediately and agreed to give the balance later. January 21 Purchased a weighing machine for OMR 400 January 23 Hamed paid the balance amount on the services rendered for him. January 27 Remitted OMR 500 to Fine automobiles. January 30 Paid office rent OMR 150. January 31 Staff salary paid OMR 1,000.
Question 1:
Analyze these transactions and prepare a table to show their effect on the
Mr. Rasool started a courier service in Ibri, Fast Couriers, on January 1, 2020. The following
transactions occurred during the month of January 2020.
January 1 Rasool invested OMR 15,000 in the business.
January 3 The business borrowed OMR 5,000 from Bank Nizwa, to be repaid after 3 years.
January 4 Bought a delivery van OMR 7,000 from Fine Automobiles. Rasool paid OMR 2,000 and the
balance will be paid later.
January 5 Paid insurance for full year OMR 1,000.
January 7 Billed a customer OMR 500, for delivery service and received cash.
January 10 Purchased packing materials (supplies) for OMR 500 on account.
January 12 Received invoice from Shelly Autocare OMR 250, for the repair of delivery van. Business
agreed to pay the cash later.
January 14 Earned OMR 1,000 on a customer order for an overseas delivery, but not received the cash.
January 15 Rasool took OMR 300 for his personal expenses.
January 18 Provided delivery service for a friend, Mr. Hamed, for OMR 300. Hamed paid OMR 180
immediately and agreed to give the balance later.
January 21 Purchased a weighing machine for OMR 400
January 23 Hamed paid the balance amount on the services rendered for him.
January 27 Remitted OMR 500 to Fine automobiles.
January 30 Paid office rent OMR 150.
January 31 Staff salary paid OMR 1,000.
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