Solve the attached file

College of Administration and Finance Sciences
Assignment (1)
Deadline: Saturday 12/10/2024 @ 23:59
Course Name: Financial Accounting
Student’s Name:
Course Code: ACCT 201
Student’s ID Number:
Semester: First
CRN:
Academic Year: 1446 H
(2024-25)
For Instructor’s Use only
Instructor’s Name: DR ASHFAQUE AHMED
Students’ Grade:
/15
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.
Restricted – ‫مقيد‬
College of Administration and Finance Sciences
Assignment Questions:
(Marks 15)
Q.1
With reference to the financial accounting, submit your answer for the following questions in your
own words. (instruction: Do not copy from the other students) 5 marks
A. What do you mean by standard setting? Who is the Standard-Setting Organizations? And
What is the purpose of standard setting?
B. What is the importance of standard setting process?
C. Why are standard setting bodies important?
D. what is the role of standard-setting organizations in Saudi Arabia?
E. Which accounting standards are used in Saudi Arabia?
Answer
Q.2-From the following information of M/S Ahmed Enterprises for the year ended 31-12-23,
i.
Ahmed invested cash 500,000, Cheque deposited into the Bank 800,000, 400,000 stock as a
share capital.
ii.
Purchases supplies 40,000 paying cash 10,000 any by cheque (bank) 30,000.
iii.
Purchases equipment, 50,000 paying cash and 40,000 on account.
iv.
Borrowed 100,000 from Saudi bank.
v.
Provided consultancy services received 50,000 in cash and 30,000 by cheque (bank).
vi.
Paid salary 60,000 cash and 30,000 by cheque (bank)
vii.
Dividends paid 70,000 by cheque (bank)
viii.
Paid utility expenses, (electricity expenses) 30,000 by cash and (water bill) 20,000 by cheque
(bank)
ix.
Purchase office equipment 75,000 by signing a 5 months 15% notes payable.
x.
Ahmed received 25,000 cash 30,000 by cheque (bank) and bills Yasser & company 45,000
publication services of 100,000 in the month of November 23.
You are required to.
a) Prepare the necessary adjusting entries. (2 marks)
b) Prepare “T” shape account (ledger Account and post each transaction). 2marks
c) Prepare necessary closing entries. 1 mark
d) Extract the trial balance from the above leger Account. –Note – for cheque must use
(bank account) 2 marks ( total 7 marks)
Restricted – ‫مقيد‬
College of Administration and Finance Sciences
Solutions:
Q3. The following information has been extracted from the books of Al Medina Corporation for
the year ended 31st December, 2019: (3 Marks)
Particulars
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Sales Salaries
Sales Commission
Travel expenses
Freight outward
Postage and stationery
Telephone expenses
Office salaries
Insurance expense
Depreciation of building
Dividend revenue
Gain on sale of investment
Interest on bonds
Income tax
Amount ($)
455,000
5,500
3,550
190,000
4,500
2,220
6,200
7,200
3,200
5,210
5,800
2,500
9,540
25,000
20,500
8,400
45,800
You are required to prepare income statement for the year ended December 31st, 2019.
Answer:
Restricted – ‫مقيد‬