II. Discussion (800 words)

a. Provide an Accounting Equation based on the following transactions with the effects. Prove that the accounting equation is satisfied in all the following transactions of Mr Ameer.

i. Mr Ameer started the business with cash.

ii. Purchased an asset on credit.

iii. Sold goods to a customer for cash and gained profit. iv. Purchased goods from a creditor on credit.

v. Payment made to a creditor in full settlement.

b. Provide examples of financial transactions relevant to Mr Ameer that involves:

i. Investment of money in the business (1 transaction)

ii. Performance of consultancy services for cash and credit (2 transactions)

iii. Paymentofexpensesbycash(1transaction)

iv. Collection of income by cash (1 transaction)

v. Purchase of assets for cash and credit (2 transactions)

vi. Collection of cash accounts (1 transaction)

vii. Payment of accounts by cash (1 transaction)

viii. Withdraw cash for personal use (1 transaction)

c. From the financial transactions in task b, prepare the Pro-forma templates for the following: i. Journal entries.

ii. Ledger accounts

iii. Trial balance

III. Recommendation (200 words)

a. Explain with Mr. Ameer the importance of bookkeeping and accounting.

References

Use at least 5 sources preferably refereed accounting journals and books or e-books.