4) Anushka began a sole trade business on 1 January 20X1. During the first month of trading, the following transactions took place:

She started the business with $5,000 of cash

She took out a loan from the bank of $10,000

She purchased a van for $12,000 cash

She purchased 100 units of inventory on credit at a total cost of $2,500 (ie $25 per unit)

She sold 10 units of inventory to a customer on credit for a total of $400 (ie $40 per unit)

She paid interest on the loan of $60

She repaid $250 of the loan

She took $10 from the business bank account to cover a personal expense

Required

Explain how each of the above transactions impacts the accounting equation and illustrate the cumulative effect that they have.

Asset = Equity + Liability