QUESTION 1 ACCOUNTING CONCEPTS (25 Marks) A. ACCOUNTING EQUATION (5 marks) Indicate the effect of each of the following transactions of MARIKANA TRADING on the accounting equation: ASSETS EQUITY + LIABILITIES USE + to denote increase. -- to denote decrease. 0 to denote no change Assume that the bank account is favourable at all times. Example: Paid insurance premium of R800 by cheque. = + LIABILITIES ASSETS -- 800 EQUITY -- 800 EG. 0 Draw this grid in your answer book. TRANSACTIONS: 1. The proprietor increased her capital of R400 000 by 25% and made a direct deposit of the amount into the business bank account. 2. Paid a creditor R2 500 via an Electronic Funds Transfer (EFT). 3. Purchased consumables on credit from Just Wholesaling for R900. 4. Charged debtor, V.Late, 12% p.a. interest on their overdue account of R4 800 for 3 months. 5. Issued a cheque for R7 000 to Megabytes for the purchase of a laptop for the business B. DISPOSAL OF FIXED ASSETS (10 marks) The following information was extracted from the books of CANDY STORES. INFORMATION: Balances on 01 March 2017 Equipment Accumulated Depreciation on Equipment R 120 000 72 000 . On 31 October 2017, an old machine costing R25 000 was sold for R4 000 cash. The accumulated depreciation on this machine was R19 500 on 01 March 2017. . A new refrigerator costing R18 000 was purchased on credit from OSCOOL on 01 December 2017. The cost of delivery amounted to R600. Equipment is depreciated at 12% p.a.on cost Calculate the following: 1. Current years depreciation on : 1.1. Equipment sold. 1.2. Equipment remaining Equipment new (2 marks) (2 marks) (2 marks) 1.3. 2. The carrying value of the equipment sold as at the date of sale. (2 marks) 3. The profit or loss made by the business by selling the equipment for R4 000. (2 marks)