Example: The owner contributes an additional R100 000 as capital to the business.

Element General Ledger Account Debit/Credit Financial Statement

reporting Equity Capital Credit Statement of Financial Position Asset Bank Debit Statement of Financial Position Transactions:

2.1 Purchase a vehicle of R150 000 through vehicle financing for the company to perform site inspections. (4)

2.2 Receive a donation of R4 000 from the local supermarket. (4)

2.3 Purchase stationery of R5 000 on account. (4)

2.4 Fill up the vehicle for R800 at Sasol on the company credit card. (4)

2.5

The debit order of R3 800 for the first vehicle installment appears on the bank statement. (4) 2.6 Stock to the value of R450 was damaged in a storm. (4)

2.7 Write off a deceased clients account of R500. (4)