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QUESTION 4: Conceptual Framework (10 marks) Element: Asset Liability, Revenue, Expense, Equity) **/o link explaining this method of referencing is available on the ACCT1008 Lcorooolide

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QUESTION 4: Conceptual Framework (10 marks) "Element: Asset Liability, Revenue, Expense, Equity) **/o link explaining this method of referencing is available on the ACCT1008 Lcorooolide site under the "Subject Essentials block) REQUIRED: Please write a letter in your own words, using the Harvard referencing system wherever appropriate addressing the queries raised by Sabra Ong (the client). Sabra Ong has written to the Managing Partner of the accounting firm you work for as a graduate accountant because she is confused about a journal entry she prepared on the 31" October (see question 2). When Sabra discussed this transaction with her friend Jed Skee, he told her that she should debit the account Accounts Payable" but she does not know why and is a bit embarrassed to ask her friend to explain . Explain with reference to the appropriate accounting definition the accounting element that was debited on the 31" of October. Ensure you explain why the account was debited. (8 marks) Up to an additional 2 marks will be awarded for following the formatting requirements below. Formatting hints: Date your letter the 4 of November 2020 Address your letter to Sabong Vacation, 4a Lane Court, Pt Short SA 5111 Any formal business letter format is acceptable (a template has not been provided students are expected to research business letter formats themselves). Set out your letter with subheadings to separate each part of your letter as you address the criteria required Consider an appropriate way to begin and end your letter consider the context of the letter). The use of appropriate language, accounting terminology and reference in your letter to the specific Information presented in the question No specific word count is prescribed. However, given the nature of the question, it would be expected that the entire letter induding address and sign-off should require no more than a fullpage . words UX English (Australia) e here to search o Tew Help Question 2 (11 marks) Although Sabra now pays Stone & Co Accounting Specialists Pty Ltd to manage the accounting function of the business, she still likes to prepare a few journals when she has time. The following general journal entries for the business Vacation' were prepared by Sabra for transactions occurring in October, however she needs your assistance in posting therh to the General Ledger Sebra has posted the opening balances (where required) into the general ledger and they are correct. Required: Post the General Journals recorded below to the General Ledger provided on the following page. Remember to foot each leder to determine the ledger balance Hints to assist in completing the ledgers: Do not delete the opening balances given The ledgers are formatted using this therefore it is best to navigate through the ledgers using the 'tab' function. When using tables, it is often easier to click on the "T" function so you can see the formatting It is quite acceptable to shorten account names Le Cash at Bank becomes CAB. Date Details Debit (5) Credit (S) 1 October 750 Sewing Table Capital (Sabra, contributed a sewing table from her home to the business) 750 8 October 495 Electricity Expense Cash at Bank (business paid for Electricity expense) 495 14 October 2 000 Clothing Racks Cash at Bank Accounts Payable (Vacation purchased four new clothing racks to display beachwear at local sailing and surfing events 500 1 500 21 October 60 Interest Expense Cash at Bank Interest expense paid on loan 24 October 4 500 Cash at Bank Beachwear Sales Sales of beachwear at local surfing event) 4 500 31 October 532 Accounts Payable Cash at Bank Paid for supplies purchased in September 532 Focus 00

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