Essay Writer » Essay Blog » Business Essays Help » Principles of Accounting

Principles of Accounting


  • 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 submissionwill 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 answered 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 pagewill NOT be accepted.

Assignment Question(S): (Total 25 Marks- -5 Questions Each Carries 5 Marks)

Q 1. In January 2023, ABC Sole Proprietorship Conducted the Following Transactions (Amounts in Saudi Riyal)

  1. Owner paid the capital for 5,000,000 in cash.
  2. It purchased equipment for 500,000 in cash.
  3. It purchased inventory for 2,000,000 in cash.
  4. It Sold inventory for 1,000,000 in cash.
  5. It Sold inventory for 200,000 on credit.
  6. It paid salaries for 250,000 in cash.
  7. It borrowed 500,000 from Riyadh bank by signing a promissory note.
  8. It purchased supplies for 100,000 on credit.
  9. It paid for the purchased supplies on credit.
  10. It collected the sold inventory on credit.

Required: Pass the Above Transactions in the Journal Using the Accrual Accounting


Q 2. Discuss The Principles and Assumptions of the Accounting Theory.


Q 3. In December 31, 2022 the accountant discovered the following information:

  1. Supplies purchased during the year and recorded as an assets were 20,000. As the Physical counting indicated that end of period supplies were 5,000.
  2. Cash received for 5,000 during the year against services not yet provided to the clients and recorded as earned revenues.
  3. Salaries for 25,000 incurred in the year but unpaid and unrecorded.
  4. Revenues for 50,000 earned in the year but uncollected and unrecorded.
  5. The annual Depreciation expenses for 10,000 unrecorded.

Required: Pass the required Adjusting Entries for the above Information.


Q 4. Below Is the Adjusted Trail Balance for ABC Corporation as of December 31 2022:

Accounts Receivable5,000,000
Accumulated Depreciation –Equipment200,000
Accounts Payable100,000
Notes Payable500,000
Unearned Revenues100,000
Common Stock4,600,000
Retained Earnings300,000
Salaries Expenses1,000,000
Rent Expenses500,000
Cost Of Goods Sold7,000,000
Depreciation Expenses100,000

Required: Prepare the Following Statements

  1. Income Statement
  2. Retained Earnings Statement
  3. Balance Sheet Statement


Q 5. The following information extracted from the cost records during January 2023

DatesParticularUnitsCost per unitTotal cost
January 1Begging inventory150203,000
January 10Purchase50251,250
January 20Purchase100303,000
January 25Sales200


  1. Compute The Cost of Goods Sold On January 25, 2023 Using First in First Out, Last in First Out and Weighted Average Methods

Principles of Accounting Assignment 2

Assignment Question(S): (Total 25 Marks- -5 Questions Each Carries 5 Marks)

In June 30, 2023, ABC Company has the following information (Amounts in Saudi Riyal)

Bank statement indicated a balance of 100,000

The cash general ledger account on that date shows a balance of 120,000

The ABC’s accountant provided Additional information necessary for preparing the ABC’s reconciliation statement:

  • A 10,000 check sent to the bank for deposit but has not yet reached the bank at the statement date.
  • The bank returned a customer’s NSF check for 26,000 received as payment on account receivable.
  • A 500 deposit by Z Company was erroneously credited to ABC account by the bank.
  • The bank statement showed 500 interest earned during June.
  • Outstanding checks totaled 15,000.


  1. Prepare a June 30 bank reconciliation statement for ABC Company.
  2. Prepare adjusting entries


Q 2. On July 31, ABC Company discovered that it cannot collect SAR 5,000 from Z a credit customer.

Required: pass journal entries to record bad debt expense using both Direct Write-Off Method and Allowance Method.


Q 3. On January 1, 2022, equipment was purchased for SAR 1000,000 cash. The equipment useful life is 10 years and has an estimated salvage value of SAR 50,000.


  1. Compute the annual depreciation expense for year 2022 using straight line method and Declining Balance Method.
  2. Pass journal entries to record the annual depreciation using straight line method and Declining Balance Method.


Q 4. On July 1, 2022, an airline company received an amount of SAR 100,000 for international flights that will take off on December 30, 2022.


  1. Prepare journal entries On July 1, 2022
  2. Prepare journal entries on December 30, 2022 assuming that the airline provided the service to customers.


Q 5. Define and Discuss the Accounting Treatment for Contingent Liabilities

Last Updated on July 27, 2023

Don`t copy text!
Scroll to Top