Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 2 August 2 0 2 3 , Africa Traders bought a new delivery vehicle of R 3 5 0 0 0 0 from SA

On 2 August 2023, Africa Traders bought a new delivery vehicle of R350000 from SA Dealers, which was financed with a secured loan from SA Bank bearing interest at prime +1% repayable over five years, for the use of delivering the goods sold to customers. On 15 August 2023, Africa Traders made a down payment of R30000 on the loan. Africa Traders is not a registered VAT vendor.
Which account will be debited, and which account will be credited in the general ledger of Africa Traders for the transactions that took place during August 2023?
Select one:
a.
Dr
Bank
Cr
2023
R
2023
R
Aug
Aug
15
Long-term loan: SA Bank
30000
Dr
Long-term loan: SA Bank
Cr
2023
R
2023
R
Aug
15
Bank
30000
Aug
2
Vehicles
350000
Dr
Vehicles
Cr
2023
R
2023
R
Aug
2
Long-term loan: SA Bank
350000
Aug
b.
Dr
Bank
Cr
2023
R
2023
R
Aug
2
Mortgage loan: SA Bank
350000
Aug
15
Mortgage loan: SA Bank
30000
Dr
Mortgage loan: SA Bank
Cr
2023
R
2023
R
Aug
15
Bank
30000
Aug
2
Bank
350000
c.
Dr
Bank
Cr
2023
R
2023
R
Aug
15
Long-term loan: SA Bank
30000
Aug
2
Long-term loan: SA Bank
350000
Dr
Long-term loan: SA Bank
Cr
2023
R
2023
R
Aug
2
Bank
350000
Aug
15
Bank
30000
d.
Dr
Bank
Cr
2023
R
2023
R
Aug
15
Long-term loan: SA Bank
30000
Aug
Dr
Long-term loan: SA Bank
Cr
2023
R
2023
R
Aug
2
Vehicles
350000
Aug
15
Bank
30000
Dr
Vehicles
Cr
2023
R
2023
R
Aug
Aug
2
Long-term loan: SA Bank
350000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial & Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

13th edition

9781133607618, 978-1285868776

More Books

Students also viewed these Accounting questions