Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Peter a qualified electrical engineer was retrenched in January 2 0 . 2 and he received a retrenchment package of R 1 0 0 0
Peter a qualified electrical engineer was retrenched in January and he received a retrenchment package of R He decided to open his own business PG Electricians on February and deposited of his retrenchment package into PG Electricians business bank account. PG Electricians will also do installations of solar panels. PG Electricians will use the periodic inventory system.
The following transactions occurred in the books of PG Electricians during the month of February :
Transaction
Details
He decided to open his own business PG Electricians on February and deposited of his retrenchment package into PG Electricians business bank account.
PG Electricians will be renting a business premises at R per month.
For the month of October, PG Electricians rendered services for cash of R
PG Electricians bought a motor vehicle from WR Cars on February for R cash.
PG Electricians employed three staff members, one receptionist and two electricians. The receptionist salary will be R a month and the two electricians wages will be R per week. The electricians worked for four weeks and were paid in cash on February
PG Electricians sold solar panels, one battery and inverter for a total cost of R to Mr Khumalo on credit on February
Instructions:
Use a full stop to indicate any decimals eg:
Round off to the second decimal after the full stop eg:
A decrease in an amount must be indicated by using a negative sign in front of the amount eg:
An increase must be indicated by the amount without any sign eg:
If an option has been provided and it is not applicable to the specific question, please put NA in the column.
Only show the amount, do not show the Reg:
The correct ledger and the net effect of TRANSACTION in the books of PG Electricians and the accounting equation will be
General ledger
Net effect on assets
Net Effect on Equity
Net Effect on Liabilities
Account to be debited
Account to be credited
R
R
R
Answer
Answer
Answer
Answer
Answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started