Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION TWO ( 2 5 ) Richfield Spotless Ltd is a service cleaning business. The business is not registered for VAT. Richfield Spotless Ltd uses
QUESTION TWO Richfield Spotless Ltd is a service cleaning business. The business is not registered for VAT. Richfield Spotless Ltd uses the perpetual inventory system. The following transactions were entered into by Richfield Spotless Ltd during December : December Richfield Spotless Ltd rendered on credit to Mthembu Inc, R Advertising fees paid by credit card of the business R Cleaning tools and equipment bought from Top Cleaners for cash R Mthembu Inc, made a direct payment into the bank account of Richfield Spotless Ltd in part payment of their account R Cleaning service rendered for cash The owner took cleaning material from the inventory of the business for own use R bought cleaning material on credit from SpotBright Inc R Wages paid cash R REQUIRED: For each of the transactions listed above, indicate the effect of the transaction on the accounting equation. Use sign to indicate an increase and a sign to indicate a decrease in the elements of the accounting equation. Also indicate the general ledger accounts affected. tabletableDateExampletableassets
QUESTION TWO
Richfield Spotless Ltd is a service cleaning business. The business is not registered for VAT. Richfield Spotless Ltd uses the perpetual inventory system. The following transactions were entered into by Richfield Spotless Ltd during December :
December
Richfield Spotless Ltd rendered on credit to Mthembu Inc, R
Advertising fees paid by credit card of the business R
Cleaning tools and equipment bought from Top Cleaners for cash R
Mthembu Inc, made a direct payment into the bank account of Richfield Spotless
Ltd in part payment of their account R
Cleaning service rendered for cash
The owner took cleaning material from the inventory of the business for own use R
bought cleaning material on credit from SpotBright Inc R
Wages paid cash R
REQUIRED:
For each of the transactions listed above, indicate the effect of the transaction on the accounting equation. Use sign to indicate an increase and a sign to indicate a decrease in the elements of the accounting equation. Also indicate the general ledger accounts affected.
tabletableDateExampletableassets
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started