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Question 1 In the process of recording accounting transactions, what is the difference between the general journal and the general ledger? (3 marks) F or
Question 1
- In the process of recording accounting transactions, what is the difference between the general journal and the general ledger? (3 marks)
- For each of the transactions identified below, state how the asset, liability and/or equity accounts increase or decrease. Name the account and indicate whether it would be recorded as a Debit or Credit. (15 Marks)
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| ASSETS | LIABILITIES | EQUITY |
| Eg. Owner contributes $5000 cash to the business. | Increase. Debit Cash $5,000 |
| Increase. Credit Contributed Capital $5000 |
| a. Obtained a loan to buy equipment for $40,000. |
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| b. Received $3000 in inventory goods from supplier on suppliers credit. |
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| c. Sold the goods in b.
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| d. Invoiced the customer $6000 for the sale in c. |
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| e. Paid the supplier in b. $3000
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| f. Paid GST (tax) of $2000
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