1. ABC Auto Parts Inc was formed by Jeff Tomlinson to fulfill his dream of running his own auto parts company. Jeff learnt this business in his previous job. The below transactions were noted in the first year of operation. Introduced capital Took a bank loan @ 10% interest pa Bought a car Purchased auto parts stock (Cash on delivery) Purchased auto parts stock on credit Sold auto parts stock for cash Sold auto parts stock on credit Car expenses paid in cash Paid interest on loan Cash collection from debtors for credit sale Cash payment to creditors for credit purchase Telephone bills paid Meals & entertainment expense paid Accountant fee paid Salary paid Drawings by owner Assets Jeff appointed you as his accountant and handed over the list of transactions. He has asked you to prepare the below two statements: a) Accounting equation showing how the transaction will be reflected in the below format Liabilities Description Accounts Receivable Inventory Wages Payable Retained Earnings Interest Income Capital General Expenses Motor Vehicle Expenses IT Software and Consumables Income Equity Nature of account Expense b) Prepare journal entry to reflect the transactions 2. Jeff Tomlinson wants your help in identifying whether the below transactions are assets, liabilities, equity, income or expense 12000 25000 12000 20000 20000 40000 40000 1400 2500 35000 16000 1100 3. Finally, Jeff Tomlinson wants you to write down and explain the debit and credit rules relating to assets, liabilities, equity, income or expense 450 2500 5000 3000

1. A BC Auto Parts inc was formed by leff Tomlinson to fulfill his dream of running his own auto parts company. Jeff learnt this business in his previous job. The below transactions were noted in the first vear of operation. Jeff appointed you as his accountant and handed over the list of transactions. He has asked you to prepare the below two statements: a) Accounting equation showing how the transaction will be reflected in the below format b) Prepare journal entry to reflect the transactions 2. Jeff Tomlinson wants your help in identifying whether the below transactions are assets, liabilities, equity. income or expense 3. Finally, Jeff Tomlinson wants you to write down and explain the debit and credit rules relating to assets, liabilities, equity, income or expense