Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2 ACCOUNTING EQUATION; DEBTORS CONTROL (20 MARKS)2.1 REQUIRED Show the effect of the following transactions of Suncoast Repairs on the Accounting equation.Use + to

QUESTION 2 ACCOUNTING EQUATION; DEBTORS CONTROL (20 MARKS)2.1 REQUIRED

Show the effect of the following transactions of Suncoast Repairs on the Accounting equation.Use + to denote an increase, to denote a decrease and 0 to denote no change to theelements of the equation. Follow the example given.

Assume that the bank balance is favourable at all times.

Example: Paid for electricity by cheque, R1 000.

TRANSACTIONS

  1. 2.1.1 Issued a cheque to Makro for the purchase of equipment, R20 000.

  2. 2.1.2 Bought consumable items on credit from Metro, R300.

(10)

No.

Assets

=

Equity

+

Liabilities

e.g.

R1 000

R1 000

0

  1. 2.1.3 Received a cheque for R800 from a debtor in settlement of his debt.

  2. 2.1.4 Purchased a computer on credit, R10 000.

  3. 2.1.5 The proprietor increased her capital contribution by depositing R50 000 into the banking

    account of Suncoast Repairs.

  4. 2.1.6 Received R8 000 cash from customers for services rendered.

  5. 2.1.7 The insurance premium was paid by debit order, R1 500.

  6. 2.1.8 The proprietor used a business cheque to pay her telephone account, R900.

  7. 2.1.9 Paid the account of a creditor, R4 000.

  8. 2.1.10 Services rendered to customers on credit, R3 000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Spiceland

6th Edition

1260786528, 9781260786521

More Books

Students also viewed these Accounting questions