2.1 Show the effect of the following transactions in the accounting equation. (15)

For example:

No.	Account DR	Account CR	A =	OE +	L
1.	Furniture	Capital	+ 20 000	+ 20 000	0

1. The owner deposited R 60 000 into business current account as his contribution.
2. Sold goods on credit to F Malila for R 7000 (Cost price R4 500).
3. Business obtained a loan of R30 000 from FCB Bank, the money was transferred to the business current account.
4. Bought stationery on credit, R300.
5. Owner withdrew R400 for personal use.

2.2 Record the following adjustments in the general journal.(10)

NB: Show all necessary workings.

The following is an extract from the books of Nexor Traders.

	R
Trade creditors	18 000
Trade debtors	15 500
Allowance for credit losses	1 000

Additional information:

1. A debtor owing R2 500 could not be traced and his account must be written off as irrecoverable.
2. Allowance for credit losses must be maintained at 10% of outstanding debtors.