Question
Mr Joseph decided to open a clothing store in Johannesburg. The following transactions took place during January 2023 (the end of the financial year) for
Mr Joseph decided to open a clothing store in Johannesburg. The following transactions took place during January 2023 (the end of the financial year) for Franz Fashions: 1. The owner, Mr Joseph, deposited R165 250 as a capital contribution. 2. Purchased inventory on credit from Wolf Creations, R48 255. 3. Deposited cash sales for the first week, R18 755. Inventory is marked up at 55% on cost. 4. Purchased shop equipment on credit from Royal Manufacturers, R21 750. 5. Paid the first months rent, R7 500, as well as a deposit of R15 000 to Castle Investments. 6. Sold inventory on credit to K Ludwig, R15 128. Inventory is marked up at 55% on cost. 7. Paid the first instalment due to Royal Manufacturers, R8 250. 8. Received the telephone account for January 2023, R3 659. This account was paid only in February 2023. 9. Received payment from K Ludwig on his account, R5 500. Required: Enter the above transactions in the accounting equation below, applying the duality concept. ASSETS = EQUITY + LIABILITIES DR + CR DR CR + DR CR +
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