EX 2: The following transactions relate to Current Account of customer Mr Salimwho has overdraft banking facilities up to OMR 50000. Interest on OD being 6%pa1/1/2020 The balance of the current account of Mr Salim OMR 2250011/1/2020 He deposited OMR 12500 in his current account in cash.15/1/2020 The customer transferred an amount of OMR 40000 to the customerAhmed, who has an account with the same bank.25/1/2020 The customer withdraw the remaining balance of the bank facilities30/1/2020 He deposited the required amount with interest in his currentaccount and maintain a bank balance of OMR 5000You are required :a. Record journal entriesb. Calculate interestC. Prepare Current Account of Mr Salim3

(B) Calculation of Interest Date of Shortage Amount Days Interest at 6% 11-01-2020 5000 21…

Answered: The following transactions relate to…

The following transactions relate to Current Ac nas overdraft banking facilities up to OMR 50C 2020 The balance of the current account of Mr 2020 He deposited OMR 12500 in his current

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

EX 2: The following transactions relate to Current Account of customer Mr Salim
who has overdraft banking facilities up to OMR 50000. Interest on OD being 6%
pa
1/1/2020 The balance of the current account of Mr Salim OMR 22500
11/1/2020 He deposited OMR 12500 in his current account in cash.
15/1/2020 The customer transferred an amount of OMR 40000 to the customer
Ahmed, who has an account with the same bank.
25/1/2020 The customer withdraw the remaining balance of the bank facilities
30/1/2020 He deposited the required amount with interest in his current
account and maintain a bank balance of OMR 5000
You are required :
a. Record journal entries
b. Calculate interest
C. Prepare Current Account of Mr Salim
3

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