Question
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
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
- Bought goods on credit from Eehnana Wholesalers, N$15 000.
- Issued a cheque to pay Buildings, N$300 000.
- Drew a cash cheque for use in the business, N$5 000.
- Cash sales of merchandise, N$4 000.
- 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 | |||
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| Effect | Reason | Effect | Reason | Effect | Reason |
| Ex | +30 000 | Bank Increase | +30 000 | Capital Increase | 0 |
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[20]
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
21st Edition
978-1259916984
