Peter a qualified electrical engineer was retrenched in January $20\mathrm{.}2$ and he received a retrenchment package of R$1000000.$ He decided to open his own business PG Electricians on $1$ February and deposited $50\%$ 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 $20\mathrm{.}2$:

Transaction

Details

$1$

He decided to open his own business PG Electricians on $1$ February $20\mathrm{.}2$ and deposited $50\%$ of his retrenchment package into PG Electricians business bank account.

$2$

PG Electricians will be renting a business premises at R$3800$ per month.

$3$

For the month of October, PG Electricians rendered services for cash of R$10000.$

$4$

PG Electricians bought a motor vehicle from WR Cars on $10$ February $20\mathrm{.}2$ for R$50000$ cash.

$5$

PG Electricians employed three staff members, one receptionist and two electricians. The receptionist salary will be R$12000$ a month and the two electrician$$s wages will be R$3500$ per week. The electricians worked for four weeks and were paid in cash on $28$ February $20\mathrm{.}2.$

$6$

PG Electricians sold $6$ solar panels, one battery and $1$ inverter for a total cost of R$65000$ to Mr Khumalo on credit on $28$ February $20\mathrm{.}2.$

Instructions:

$1.$ Use a full stop to indicate any decimals $($eg: $1000\mathrm{.}01)$

$2.$ Round off to the second decimal after the full stop $($eg: $50\mathrm{.}56)$

$3.$ A decrease in an amount must be indicated by using a negative sign in front of the amount $($eg: $-1000\mathrm{.}01)$

$4.$ An increase must be indicated by the amount without any sign $($eg: $1000\mathrm{.}01)$

$5.$ If an option has been provided and it is not applicable to the specific question, please put N$/$A in the column.

$6.$ Only show the amount, do not show the $"$R$"($eg: $1000)$

The correct ledger and the net effect of TRANSACTION $4$ 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