Analyze and journal the transactions: The Company is VAT- registered with 5% tax rate. 03-Jan Mr Y used his money to put up a business amounting 500,000 Dhs with a trade name of Amazing Company. 03-Jan The annual office rent contract is 150,000+5% which is agreed to be paid quarterly with a security deposit of 5,000 Dhs. 03-Jan Paid deposit for DEWA 2,000 & etisalat 500 in cash 03-Jan Paid security deposit for rent 5,000 dhs in cash. 04-Jan Pay Ejari amounting 219.50 AED in cash. 04-Jan Trade Licenses amounting 15,788 AED, was complited and granted, pay in cash. 04-Jan Open an account to Dubai Islamic Bank at 100,000 Dhs cash. 04-Jan Purchase a machinery ( with 5yrs useful life) to be used in business 50,000 Dhs+5% in cash from Greece Company. 05-Jan Paid the PRO who process the trade licenses 2,500 AED in cash. 05-Jan Purchase office furnitures ( with 3yrs useful life) 25,000 Dhs+ 5% in cash from Macky Company. 07-Jan AAA-Company provides 500 units a total amount of 100,000 Dhs + 5% goods, 50% deposit was made in cash & 50% on credit terms of 30days, 08-Jan Received Cash from Customer Adina Company amounting 50,000 Dhs as advance for the goods order. 10-Jan Sold goods 450 units to Customer Britte Company on credit terms of 15days amounting 150,000 Dhs + 5%. 12-Jan Issued a dated cheque for the first quarter rent & a post dated for the remaining quarter ( cheque nos 1001-1004 ) 14-Jan Purchase office supplies amounting 10,000 Dhs in cash from Carrefour including VAT of 5%. 15-Jan Received a deposit in the bank 25,000 Dhs from Customer Adina. 16-Jan Gasoline of 1,000 Dhs cash including Vat 0f 5%. 16-Jan Purchase office bulb for light replacement, 750 dhs + 5 % VAT paid in cash 17-Jan Purchase goods of 230 units amounting 50,000 Dhs + 5 %from Carolina Company & issue a dated cheque (#1005) 19-Jan Finished & deliver the goods of 270 units ordered by Customer Adina with sales invoice amounting 100,000 Dhs + 5 % and received the balance in cash. 21-Jan Received Deposit in bank from Customer Britte for 50% of balance due. 25-Jan Collected the full amount from Customer Britte in cash. 26-Jan Deposit to the bank 150,000 Dhs. 29-Jan Paid salary in cash 5,000 Dhs each for 3 staff. 30-Jan Issued a cheque (#1006) to AAA-Company for 50% of the balance due. 30-Jan The company's mark-up on sales is 40% of cost wishing to recover everything on this. At the end of January, ending inventory records shows 10pcs. Additional Note: - For petty cash use imprest fund system,and periodic inventory system,,all other expenses is inclusive of vat if not mention - Since Amazing Company is VAT Registered, all expenses and income has VAT whether mention or not vat is imposed -For example trade license,,amount is given without saying plus vat,so it means that the amount is inclusive already of vat,,unless it was mention plus vat

Analyze and journal the transactions: The Company is VAT- registered with 5% tax rate. 03-Jan Mr Y used his money to put up a business amounting 500,000 Dhs with a trade name of Amazing Company. 03-Jan The annual office rent contract is 150,000+5% which is agreed to be paid quarterly with a security deposit of 5,000 Dhs. 03-Jan Paid deposit for DEWA 2,000 & etisalat 500 in cash 03-Jan Paid security deposit for rent 5,000 dhs in cash. 04-Jan Pay Ejari amounting 219.50 AED in cash. 04-Jan Trade Licenses amounting 15,788 AED, was complited and granted, pay in cash. 04-Jan Open an account to Dubai Islamic Bank at 100,000 Dhs cash. 04-Jan Purchase a machinery ( with 5yrs useful life) to be used in business 50,000 Dhs+5% in cash from Greece Company. 05-Jan Paid the PRO who process the trade licenses 2,500 AED in cash. 05-Jan Purchase office furnitures ( with 3yrs useful life) 25,000 Dhs+ 5% in cash from Macky Company. 07-Jan AAA-Company provides 500 units a total amount of 100,000 Dhs + 5% goods, 50% deposit was made in cash & 50% on credit terms of 30days, 08-Jan Received Cash from Customer Adina Company amounting 50,000 Dhs as advance for the goods order. 10-Jan Sold goods 450 units to Customer Britte Company on credit terms of 15days amounting 150,000 Dhs + 5%. 12-Jan Issued a dated cheque for the first quarter rent & a post dated for the remaining quarter ( cheque nos 1001-1004 ) 14-Jan Purchase office supplies amounting 10,000 Dhs in cash from Carrefour including VAT of 5%. 15-Jan Received a deposit in the bank 25,000 Dhs from Customer Adina. 16-Jan Gasoline of 1,000 Dhs cash including Vat 0f 5%. 16-Jan Purchase office bulb for light replacement, 750 dhs + 5 % VAT paid in cash 17-Jan Purchase goods of 230 units amounting 50,000 Dhs + 5 %from Carolina Company & issue a dated cheque (#1005) 19-Jan Finished & deliver the goods of 270 units ordered by Customer Adina with sales invoice amounting 100,000 Dhs + 5 % and received the balance in cash. 21-Jan Received Deposit in bank from Customer Britte for 50% of balance due. 25-Jan Collected the full amount from Customer Britte in cash. 26-Jan Deposit to the bank 150,000 Dhs. 29-Jan Paid salary in cash 5,000 Dhs each for 3 staff. 30-Jan Issued a cheque (#1006) to AAA-Company for 50% of the balance due. 30-Jan The company's mark-up on sales is 40% of cost wishing to recover everything on this. At the end of January, ending inventory records shows 10pcs. Additional Note: - For petty cash use imprest fund system,and periodic inventory system,,all other expenses is inclusive of vat if not mention - Since Amazing Company is VAT Registered, all expenses and income has VAT whether mention or not vat is imposed -For example trade license,,amount is given without saying plus vat,so it means that the amount is inclusive already of vat,,unless it was mention plus vat

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Analyze and journal the transactions:

The Company is VAT- registered with 5% tax rate.

03-Jan

Mr Y used his money to put up a business amounting 500,000 Dhs with a trade name of Amazing Company.

03-Jan

The annual office rent contract is 150,000+5% which is agreed to be paid quarterly with a security deposit of 5,000 Dhs.

03-Jan

Paid deposit for DEWA 2,000 & etisalat 500 in cash

03-Jan

Paid security deposit for rent 5,000 dhs in cash.

04-Jan

Pay Ejari amounting 219.50 AED in cash.

04-Jan

Trade Licenses amounting 15,788 AED, was complited and granted, pay in cash.

04-Jan

Open an account to Dubai Islamic Bank at 100,000 Dhs cash.

04-Jan

Purchase a machinery ( with 5yrs useful life) to be used in business 50,000 Dhs+5% in cash from Greece Company.

05-Jan

Paid the PRO who process the trade licenses 2,500 AED in cash.

05-Jan

Purchase office furnitures ( with 3yrs useful life) 25,000 Dhs+ 5% in cash from Macky Company.

07-Jan

AAA-Company provides 500 units a total amount of 100,000 Dhs + 5% goods, 50% deposit was made in cash & 50% on credit terms of 30days,

08-Jan

Received Cash from Customer Adina Company amounting 50,000 Dhs as advance for the goods order.

10-Jan

Sold goods 450 units to Customer Britte Company on credit terms of 15days amounting 150,000 Dhs + 5%.

12-Jan

Issued a dated cheque for the first quarter rent & a post dated for the remaining quarter ( cheque nos 1001-1004 )

14-Jan

Purchase office supplies amounting 10,000 Dhs in cash from Carrefour including VAT of 5%.

15-Jan

Received a deposit in the bank 25,000 Dhs from Customer Adina.

16-Jan

Gasoline of 1,000 Dhs cash including Vat 0f 5%.

16-Jan

Purchase office bulb for light replacement, 750 dhs + 5 % VAT paid in cash

17-Jan

Purchase goods of 230 units amounting 50,000 Dhs + 5 %from Carolina Company & issue a dated cheque (#1005)

19-Jan

Finished & deliver the goods of 270 units ordered by Customer Adina with sales invoice amounting 100,000 Dhs + 5 % and received the balance in cash.

21-Jan

Received Deposit in bank from Customer Britte for 50% of balance due.

25-Jan

Collected the full amount from Customer Britte in cash.

26-Jan

Deposit to the bank 150,000 Dhs.

29-Jan

Paid salary in cash 5,000 Dhs each for 3 staff.

30-Jan

Issued a cheque (#1006) to AAA-Company for 50% of the balance due.

30-Jan

The company's mark-up on sales is 40% of cost wishing to recover everything on this.

At the end of January, ending inventory records shows 10pcs.

Additional Note:

- For petty cash use imprest fund system,and periodic inventory system,,all other expenses is inclusive of vat if not mention

- Since Amazing Company is VAT Registered, all expenses and income has VAT whether mention or not vat is imposed

-For example trade license,,amount is given without saying plus vat,so it means that the amount is inclusive already of vat,,unless it was mention plus vat

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.