Jaquer Traders incurred the following transactions in January 2020. The business uses the perpetual inventory method and all goods are subject to a mark up of 40% on cost.

Day

Transaction

3

Purchased inventory on credit for R5 000

9

Cash sale of trading inventory, sales price R11 200

15

Paid R500 from the petty cash toward repairs and maintenance.

22

Paid R3 000 to the creditor as partial settlement of the goods purchased on the 3rd.

25

Purchased equipment of R4 000 and paid via EFT.

Required:

Q.2.1

Show how the above transactions will affect the accounting equation and enter how the accounts in the general ledger will be affected. Clearly show debit and credit as well as increases or decreases.

Example: Received a capital contribution of R100 000 in the form of cash:

Ignore VAT.

Round all amounts to the nearest rand.

Date

Assets (R)

=

Owner's Equity (R)

+

Liabilities

E.g.

+

100 000

+

100 000

Dr

Bank

Cr

Capital