multiile choice

Lindy Loo Traders paid an insurance premium of R7 920 on 1 February 2021. The premium was for the next six months up to 31 July 2021. Lindy Loo Traders asked your advice on how to record the transaction in their accounting records. The financial yearend of the entity is 28 February. A. Dr Insurance R1 320, Dr Prepaid expenses R6 600, Cr Bank R7 920 B. Dr Insurance R7 920, Cr Prepaid expenses: Insurance R1 320, Cr Bank R6 600 C. Dr Insurance R6 600, Dr Prepaid expenses R1 320, Cr Bank The accounting equation can be expressed as follows: A. Owners' equity = Total current assets + Total current liabilities OB. Owners' equity + Total assets = Total liabilities C. Total assets - Total liabilities = Owners' equity D. Owners' equity = Total assets + Total liabilities David Doolittle Traders purchased a vehicle for R386 100 on 1 March 2021 from Moto Mainland Cars on credit. David Doolittle Traders paid a deposit of R198 000 from their bank account and negotiated to pay the outstanding amount in instalments of R37 620 for the next 5 months. Which one of the following alternatives shows the correct net effect of the above transaction on the accounting equation on 1 March 2021? Option ASSETS OWNER'S LIABILITIES EQUITY +188 100 0 +188 100 B +386 + 198 000 + 188 100 100 + 386 +188 100 100 - 198 000 D -188 100 +386 100 -198 000 O A. Option B. Option D C. Option A OD. Option B Nono Traders has a bank overdraft of R21 120 on 31 January 2021. Nono Traders received the bank statement for January on 5 February 2021 and realised that the bank charges for January amounted to R902. Which one of the following alternatives represents the correct effect of the bank charges on the accounting equation? Option ASSETS OWNER'S LIABILITIES EQUITY A +902 + 902 0 B - 902 - 902 0 0 - 902 +902 D 0 +902 +902 A. Option D B. Option B O C. Option D. Option A DOSYON Tassy Traders has arranged with the bank for an overdraft facility, prior to purchasing office equipment for R55 000 from O&Q Equip who is a cash supplier. O&Q Equip offered a 10% cash discount for a direct EFT payment. Which one of the following answers is a correct indication of the effect of the above transaction on the accounting equation of Tassy Traders? Option ASSETS OWNER'S LIABILITIES EQUITY A 55 000 00 + 55 000 + 55 000 + 49 500 + 49 500 D + 60 500 +55 000 + 5 500 A. Option C B. Option A C. Option D D. Option B Reset Selection