Reference no: EM132499604

Problem 1: Following are the transactions for MR. N's Books of accounts.

Started a business with 100,000 SR cash.
Bought furniture for 25,000 Cash.
Bought equipments for cash SR 20,000
Bought office supplies for SR 5,000 on credit from MR. X
Provided services for SR 15,000 Cash
Provided services for SR 8,000 on credit to MR. Y
Paid cash to Mr. X SR. 4,000
Received cash from Mr. Y SR 5000

Requirements: Prepare the accounting equation for Mr. N's business.

Problem 2: Mr. Ahmad has invested 15000 SR cash to start a garments business in Jeddah on 1st of January 2013. Following are the business transactions happened over time.

Mr. Ahmad paid 2000 SR cash to buy furniture and equipments for his shop on 15th of January 2013.
All of the garments were purchased on cash for amount 8000 SR.
First sales revenue for the shop was 500 SR cash.
Mr. Ahmad paid electricity expenses of 200 SR for the shop in cash on 3rd of February 2013.
On 15th of February, MR. Ahmad sold some garments amounting 2000 SR, of which 1000 SR are given in cash, while rest of money will be received after one month.
On 20th of February, MR. Ahmad has taken 2000 SR from the business for his personal use.

Requirements: Prepare the accounting equation for Mr. Ahmad business.

Problem 3: Miss Hanouf has started a beauty parlor by investing 50,000 SR cash on 1st March 2012. Following are the business transaction for the business.

Miss Hanouf has spent 10,000 SR cash for the parlor equipments.
Other parlor accessories were purchased for 20,000 on credit.
Miss Hanouf has paid the 3000 SR as rent in cash.
3000 SR were earned and paid in cash for bridal make up services.
The parlor has provided services on account to some of the customers and wrote 4000 SR as receivables.
Miss Hanouf discussed an expansion project amounting 100,000 SR with her friend Sara. They might expand the services to other cities in 2015.
The entire electricity bills for the month were still due amounting 1500 SR in total.
Miss Hanouf received 2000 SR cash in terms of receivables.

Requirements: Prepare the accounting equation for Miss Hanouf business.

Problem 4: Abrar has decided to open a computer equipment business which she named Computronics. On 1st of February 2012 she invested 20,000 SR cash in the business.

Abrar has purchased computer equipment's for SR 10,000 Cash.
Abrar has purchased office supplies for her business amounting SR 2000 on account.
Abrar received SR 1500 as her first selling income.
She placed an ad in the local newspaper which cost her SR 500. Abrar still haven't paid that amount.
Abrar has sold some equipment for SR 5000 of which she has received SR 2000 in cash while the rest of money will be paid next month.
Abrar paid salaries of SR 3000 for the month of February.
She also pays the advertisement bill of SR 500 in cash.
Abrar withdraws SR 2000 for her personal use.
Abrar received 2000 cash from the customer which were due in transaction 6.

Requirements: Prepare the accounting equation for Abrar's business.