Question 4

A summary of transactions, taken from the books of Okatope Stores, is given below.

Example:

Owner deposited N$30 000 in the current account of the business as his capital contribution.

Transactions

1. Bought goods on credit from Eehnana Wholesalers, N$15 000.
2. Issued a cheque to pay Buildings, N$300 000.
3. Drew a cash cheque for use in the business, N$5 000.
4. Cash sales of merchandise, N$4 000.
5. Bought equipment on credit from Tura-Furnitures, N$100 000.

REQUIRED

Show the effect of these transactions on the accounting equation, show an increase with a plus (+), a decrease with a minus (-) and no effect with a zero (0).

No	Assets		Owners Equity		Liabilities
	Effect	Reason	Effect	Reason	Effect	Reason
Ex	+30 000	Bank Increase	+30 000	Capital Increase	0
1.
2
3.
4
5.

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