. Accounting Standards generally accepted accounting practice in the kingdom of Saudi Arabia.

2. SADAFCO is an excellent, Saudi Arabian based company whose operations incorporate

nearby generations, bringing in, displaying of a great variety of items. The portfolio incorporates
Dairy Products, Ice Cream, Tomato Paste, Snacks and Drinks in the Middle East and North
Africa. The organization's center items are under its leader Saudi mark. Other brand names in its
portfolio are Crispy, Baboo and Majestique. SADAFCO PERFORMANCE TO 31 MARCH
2009: SALES & PROFIT (SRM)

3.)

A. The board of directors are in charge of these consolidated financial statements.

B. The name of the auditor is “Ernst & Young”, the responsibility of the auditor is to express
supposition on the united monetary explanations in the eyes of audit. These standard includes
generally accepted accounting practice in Saudi Arabia. (Middle East Economics, 2009)

4. The net sales for the year 2015/2016 has been increased by the rate of 9.7percent compared to
2014/2015.

2014/2015 2015/2016 Increase increase (%)

Sales (In Million) 1807 1983 176 9.74%
*=176/1807

5.

The Net profit for the year 2014/2015 is 552.28 and 2015/2016 is 708.637, the net income has
been increased in 2015/2016 compared to 2014/2015 with an increase of 28.31%. Compared to
this percentage the year 2015/2016 was much better than 2014/2015. (Bober, 2017)

2014/2015 2015/2016 Increase increase (%)

Profilte (IN Millions) 552.28 708.637 156.357 28.31%

6.

The Debt ratio for SADAFCO as of March 31, 2016 & March 31, 2015 is as per the following,

March 31,2016 March 31,2015

Liabilities 296,920 259,841
Assets 1,390,504 1,209,073
Debt Ratio 0.213 0.214
 PART – B
1.

Debit Credit
Cash 15000
Common stock 15000

Equipment 10000
Accounts payable 7000
Cash 3000

Supplies 1700
Accounts payable 1700

Prepaid Insurance 1800

Cash 1800

Accounts receivable 4200

Service revenue 4200

Account payable 1400

Cash 1400

Salaries and wages expense 1900

Cash 1900

Cash 2400
Account receivable 2400

Account receivable 2100

Service revenue 2100

Gasoline expense 400

Cash 400

Dividend 500
Cash 500

TOTAL 41400 41400

2. POST JULY TRANSACTIONS TO THE LEDGER using T -Account

Debit Credit

Cash
15000
3000
1800
1400
1900
2400
400
500
Balance 8400

Debit Credit

Account Receivable
4200
2400
2100
Balance 3900

Debit Credit
Supplies
1700

Balance 1700
 Debit Credit
Prepaid Insurance
1800

Balance 1800

Debit Credit
Accounts payable
7000
1700
1400
Balance 7300

Debit Credit
Equipment
10000

Balance 10000

Debit Credit
Consumer stock
15000
Balance 15000

Debit Credit
Dividends
500

Balance 500
 Debit Credit
Service Revenue
4200
2100
Balance 6300

Debit Credit
Gasoline Expense
400
Balance 400

Debit Credit
Salaries and wages
1900

Balance 1900

3.

Trial balance before adjustments as at July 31,2016 Debit Credit

Cash 8400
Accounts receivables 3900
Supplies 1700
accounts Payables 7300
Equipment 10000
prepaid insurance 1800
common stock 15000
gasoline expense 400

Service revenue 6300

Dividends 500
salaries & wages expenses 1900
Total 28600 28600
4.

Debit Credit
Accounts receivables 1300
Service revenue 1300

Depreciation expense 200

accumulated depreciation 200

Insurance expense 150

prepaid insurance 150

Supplies expense 1420

Supplies 1420

Salaries and wages expense 630

salaries and wages payable 630

5.

Trail Balance after adjustments , July 31, 2016 Debit credit

Cash 8400
Accounts receivables 5200
Supplies 280
salaries and wages payable 630
Accounts payable 7300
Depreciation expense 200
accumulated depreciation 200
equipment 10000
prepaid insurance 1650
common stock 15000
gasoline expense 400

Service revenue 7600

Dividends 500
Supplies expense 1420
Insurance 150
Salaries and wages 2530
Total 30730 30730

Income Statement

Service revenue 7600

Expense:

Salaries &wages expense 2530

supplies expense 1420

gasoline expense 400

6.

Depreciation expense 200

insurance Expense 150

total expense 4700

Net Income 2900

7. JOURNALIZE AND POST THE CLOSING ENTRIES

Debit Credit
Service Revenue 7600
income summery 7600

Income summery 4700

 salaries and wages expenses 2530
supplies expense 1420
gasoline expense 400
depreciation expense 200
insurance expense 150

Income summary 2900

retained earnings 2900

Retained earnings 500

Dividends 500
Total 15700 15700

8. POST CLOSING TRIAL BALANCE,

Trial Balance after adjustments at July 31,2016 Debit Credit

Cash 8400
Accounts receivables 5200
Supplies 280
salaries and wages Payable 630
accounts Payables 7300
depreciation expense 200
accumulated depreciation 200
equipment 10000
prepaid insurance 1650
common stock 15000
gasoline expense 400

Service revenue 7600

supplies expense 1420
Dividends 500
insurance expense 150
salaries and wages expense 2530
Total 30730 30730

List of References,
1) MEED: Middle East Economic Digest. 6/12/2009, Vol. 53 Issue 24, p26-27. 2p. 2 Graphs. Accessed from –
AOU LIBRARY - http://web.a.ebscohost.com/ehost/detail/detail?vid=18&sid=6be3035f-8865-4181-9e8e-
34f26745afed%40sessionmgr4008&hid=4204&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=
43046311&db=bsu

2) MEED: Middle East Economic Digest. 10/29/2004, Vol. 48 Issue 44, p22-22. 1/3p.Accessed from – AOU
Library - http://web.a.ebscohost.com/ehost/detail/detail?vid=19&sid=6be3035f-8865-4181-9e8e-
34f26745afed%40sessionmgr4008&hid=4204&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=
15082634&db=bsu

3) Equipment Leasing & Finance. Mar/Apr2017, Vol. 33 Issue 2, p42-45. 4p. Accessed from – AOU Library -
http://web.a.ebscohost.com/ehost/detail/detail?vid=21&sid=6be3035f-8865-4181-9e8e-
34f26745afed%40sessionmgr4008&hid=4204&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=
121881134&db=bsu

4) https://www.thebalance.com/how-to-prepare-an-income-statement-393583 , Accessed
MAY 01, 2017 at 14:00.

5) https://www.accountingcoach.com/debits-and-credits/explanation/2 , Accessed May

01,2017 at 13:45