Question 2 [38]

ACCOUNTING EQUATION

Ms Liu decided to open a computer store, Lenovo Enterprises, in Cape Town. The entity uses

the perpetual system to record inventory. The following transactions took place during August

2020 for Lenovo Enterprises. (Ignore VAT.)

1. The owner, Ms Liu, deposited R175 000 as a capital contribution.

2. Purchased inventory on credit from Zero Plus, R65 250.

3. Purchased a delivery vehicle on credit from Car Queen, R128 000.

4. Deposited cash sales for the first week, R16 800. Inventory is marked up at 60% on cost.

5. Paid the first month's rent, R5 700, as well as a deposit of R15 000 to RCI Investments.

6. Sold inventory on credit to Romeo, R20 160. Inventory is marked up at 60% on cost.

7. Deposited cash sales for the week, R28 040. Inventory is marked up at 60% on cost.

8. Paid the first instalment due to Car Queen, R12 250.

9. Received payment from Romeo, R5 000, on his account.

Required:

Enter the above transactions in the accounting equation below, applying the duality concept.

the table is in the screenshot

9 . 042 Document1 - Microsoft Word - X Home Insert Page Layout References Mailings Review View Cut Calibri (Body) Ep Copy - 11 - A A 4% AaBbCcDC|AaBbCcDc AaBbC AaBbCc AaBI AaBbCCL AA Find Bac Replace Paste B / U - abe X2 x' Aa 2 . A- 1 Normal 1 No Spaci... Heading 1 Heading 2 Title Subtitle Change Format Painter Styles Select Clipboard Font Paragraph Styles Editing Document Recovery L Word has recovered the following files. Save the ones you wish to keep. Available files . I . . . MEC ass 2020 final [... ersion created last ... 5:35 PM Friday, Aug... . I . . . No. General ledger Assets Owner's equity liabilities Account Dr Account Cr E.g Trading stock bank +1 520 @ Which file do I want to save? Close . I . . . 4 . . . 1 . . . 3 . . . 1 . . . 2 . Page: 1 of 1 Words: 17 100% + 2:29 PM Type here to search 15-Aug-20