Question
moses a qualified motor mechanic with 22 years of experience began his own business, command vehicle repairs. on the 1st march 2023, moses withdrew money
moses a qualified motor mechanic with 22 years of experience began his own business, command vehicle repairs. on the 1st march 2023, moses withdrew money from his retirement fund and deposited R80 000 into a business bank account on 9 march 2023. The following transactions for the month of June 2023 need to be recorded.Show the financial impact of the transaction in accounting equations.
Date: | |
2 june 2023 | A rental agreement for premises occupied on 01 march 2023 stipulated that the rent for the first 3 months was R1000 per month.Thereafter the rent increases to R2000 per month untill 28 February 2024. The June 2023 rent was paid by a direct deposit into the landlords account |
3 June | Hired 2 employees to assist with repairs, cleaning and administration. Each assistant will be paid a rate of R3500 per month. |
4 June | Moses brought personal tools and equipment to be used in the business. The tools and equipment were valued at R32000 |
5 June | The electricity account for May 2023 of R2600 paid by cash |
8 June | Purchased vehicle parts from nuts suppliers for R5800 on a 30 day account |
11 June | Deposited R49000 into the business account for services rendered |
16 June | Purchased diagnostic equipment from Mve suppliers for R40000 on credit. Paid a deposit of R10000.The balance will be paid in equal monthly installments beginning on 1 august 2023 |
20 June | Moses withdrew R9000 from the business bank account for is own personal use |
25 June | Paid salaries to 2 employees hired on 2nd June 2023 |
27 June | Paid telephone account of R1100 for June 2023 |
29 June | Paid Nuts suppliers for the parts purchased on 8 june 2023.Received a settlement discunt of 10 % for early payment (refer to transaction 8 June 2023) |
30 June | Deposited R63000 for services rendered to the value of R70000.A 10% discount was allowed for cash payments. |
Record the above transactions for the month ended 30th June 2023 through a table. Simultaneously show the financial impact of the transactions on the accounting equations and the effect of the same transactions on the relevant accounts. The table is sensetive to + for increase and minus for decreases.
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