QUESTION ONE

$[25]$

Detail the impact of the following transactions on the accounting equation, by populating the

table

provided. Document all calculations.

Example: Purchase stationery of R$50$ from petty cash.

$\backslash$table$[[$Account Debit,Account Credit,Asset,Equity,Liability$],[$Stationery$,$Petty Cash,$(R50),(R50),]]$

$1\mathrm{.}1.$ A rental agreement, effective $1$ April $2023,$ stipulates that the rental expense of R$4500$ increases annually with $8\%$ on $1$ April. At financial year$-$end, $31$ March $2024,$ the rental balance reported in the general ledger amounted to R$63568\mathrm{.}80$

$(3)$

$1\mathrm{.}2.$ A motor vehicle, originally purchased for R$320000$ on $1$ December ${2020}_{?},$ is depreciated at $20\%$ on the diminishing depreciation method. The residual value was set at $25\%$ of the purchase price. The vehicle was sold on $30$ June $2023$ for R$275000.$ Only record entries for the financial period $1$ April $2023$ to $30$ June $2023.$

$1\mathrm{.}3.$ Mr$.$ Gizzi's account of R$7430$ was handed over to the attorneys for collection during May $2023.$ The lawyers finalized the liquidation and distributed a final payout of $45$ c in the rand on $31$ March $2024.$ The customer control account amounted to R$55700$ prior distribution. The company adopted a policy to allow for a provision of doubtful debts of $12\%.$ The allowance account had a balance of R $4600$ on $29$ February $2024.$ The entries affecting March $2024$ have not been recorded.

$1\mathrm{.}4.$ A perpetual inventory system is implemented at Zayder's $($Pty$)$ Ltd$.$ The balance carried forward for the financial period amounted to R$13000.$ The total purchases amounted to R$20000$ with sales of R$18500.$ Management considers changing to a periodic inventory system and requested an explanation from you on how the transaction recording would be affected.

$(5)$