Question
1.1 S Temba owns and personally operates a business, TS Services. The following are a summary of the transaction for the period ended 31 May
1.1 S Temba owns and personally operates a business, TS Services. The following are a summary of the transaction for the period ended 31 May 2021
No | Details of transaction |
I . | Temba deposited an additional R50 000 into the business bank account. |
2. | Temba bought a second hand vehicle from H Ford Cars for R80 000. A deposit of R30 000 was paid and the balance will be paid in 5 instalments |
3. | Bought uniforms marked at R 15 000 from Major Fabs. Received a 10% cash discount and paid by electronic funds transfer. |
4. | Paid an amount of RI 8 000 for rent. |
5. | Received R8 400 from debtor to settle and account of R8 700. |
6. | Received an account for repairs to vehicles for R3 800. |
7. | A total of R72 400 was deposited by clients for services rendered. |
8. | Temba drew R7 000 from the business for personal use. |
9. | The first instalment for the vehicle bought from Ford Cars (refer No 2 above) was paid by an electronic funds transfer. |
10. | Paid wages of R26 400 by making transfers to employees bank accounts. |
Required:
Record all the above transactions to show how they affect the basic accounting equation. Also show the account debited and the account credited. Prepare a table such as the one shown below and record each transaction separately.
Totals for the accounting equation are not required. To show increases in value, use a +
To show decreases in value, use a or brackets (1 1 1) and O for no effect.
Example:
00 Bought stationery for RI 000 cash
No | Assets | Equity | Liabilities |
| Account Debited | Account Credited |
00 | (1 000) | (1 000) |
|
| Stationery | Bank |
|
|
|
|
|
|
|
21
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