Wiam water supply services orders a water pump and expects the delivery in 30 days. The order was placed in 1st January, 2019 with an estimated cost of RO 8000. The water pump was delivered on time by the supplier on 30th January, 2019 with a voucher of RO 8,100. The voucher was approved on 6th February 2019 and the payment was settled on 7th February, 2019. Based on the above case, answer the following six questions (Questions 45-50) Question 45 Question text In the above case the disbursement is recorded on: a. 1st July, 2019 b. 30th January, 2019 c. 7th February, 2019 d. 6th February, 2019 Question 46 Question text Suppose the order made on 1st January is cancelled later on 10th January, which among the following will be the correct accounting treatment? a. A fresh encumbrance is made again on 10th January b. There will be no effect on the encumbrance control account c. The encumbrance made earlier is reversed. d. The available fund balance will be shown as reduced by estimated amount of the order Question 47 Question text Which among the following journal entries are passed at the time of ordering goods? a. Budgetary fund balance for encumbrances (Debit) 8,000 Vouchers payable (Credit) 8,000 b. Budgetary fund balance for encumbrances (Debit) 8,000 Encumbrances control (Credit) 8,000 c. Encumbrances control (Debit) 8,000 Vouchers payable (Credit) 8,000 d. Encumbrances control (Debit) 8,000 Budgetary fund balance for encumbrances (Credit) 8,000 Question 48 Question text Which among the following journal entries are recorded to cancel encumbrance made earlier? a. Budgetary fund balance for encumbrances (Debit) 8,000 Encumbrances control (Credit) 8,000 b. Encumbrances control (Debit) 8,000 Budgetary fund balance for encumbrances (Credit) 8,000 c. Budgetary fund balance for encumbrances (Debit) 8,100 Encumbrances control (Credit) 8,100 d. Encumbrances control (Debit) 8,100 Vouchers payable (Credit) 8,100 Question 49 Question text Which among the following journal entries relate to recording of expenditure for water pump on 30th January, 2019? Expenditure control (Debit) 8,100 Cash (Credit) 8,100 Expenditure control (Debit) 8,000 Vouchers payable (Credit) 8,000 Expenditure control (Debit) 8,000 Cash (Credit) 8,000 Expenditure control (Debit) 8,100 Vouchers payable (Credit) 8,100 Question 50 Question text Which among the following journal entry is passed for recording settlement of payment to vendor on 7th February, 2019? a. Vendor (Debit) 8,000 Bank (Credit) 8,000 b. Vouchers payable (Debit) 8,000 Bank (Credit) 8,000 c. Vendor (Debit) 8,100 Bank (Credit) 8,100 d. Vouchers payable (Debit) 8,100 Bank (Credit) 8,100
Wiam water supply services orders a water pump and expects the delivery in 30 days. The order was placed in 1st January, 2019 with an estimated cost of RO 8000. The water pump was delivered on time by the supplier on 30th January, 2019 with a voucher of RO 8,100. The voucher was approved on 6th February 2019 and the payment was settled on 7th February, 2019.
Based on the above case, answer the following six questions (Questions 45-50)
Question 45
Question text
Question 46
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Question 47
Question text
Which among the following journal entries are passed at the time of ordering goods?
Budgetary fund balance for encumbrances (Debit) 8,000
Vouchers payable (Credit) 8,000
Budgetary fund balance for encumbrances (Debit) 8,000
Encumbrances control (Credit) 8,000
Encumbrances control (Debit) 8,000
Vouchers payable (Credit) 8,000
Encumbrances control (Debit) 8,000
Budgetary fund balance for encumbrances (Credit) 8,000
Question 48
Question text
Which among the following journal entries are recorded to cancel encumbrance made earlier?
Budgetary fund balance for encumbrances (Debit) 8,000
Encumbrances control (Credit) 8,000
Encumbrances control (Debit) 8,000
Budgetary fund balance for encumbrances (Credit) 8,000
Budgetary fund balance for encumbrances (Debit) 8,100
Encumbrances control (Credit) 8,100
Encumbrances control (Debit) 8,100
Vouchers payable (Credit) 8,100
Question 49
Question text
Which among the following journal entries relate to recording of expenditure for water pump on 30th January, 2019?
Expenditure control (Debit) 8,100
Cash (Credit) 8,100
Expenditure control (Debit) 8,000
Vouchers payable (Credit) 8,000
Expenditure control (Debit) 8,000
Cash (Credit) 8,000
Expenditure control (Debit) 8,100
Vouchers payable (Credit) 8,100
Question 50
Question text
Which among the following
Vendor (Debit) 8,000
Bank (Credit) 8,000
Vouchers payable (Debit) 8,000
Bank (Credit) 8,000
Vendor (Debit) 8,100
Bank (Credit) 8,100
Vouchers payable (Debit) 8,100
Bank (Credit) 8,100
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