QUESTION TWO [20]

Show the effect of the following transactions of Mac Limited on the accounting equation using the format provided. Use + if the element increases, - if the element decreases and 0 if the element remains unchanged. Also indicate the amount.

E.g. Mac bought stationery on credit, R900. No.	Assets	= Equity	+ Liabilities
E.g.	0	-900	+900

Transactions:

2.1 Bought invoice books on credit, R1 300.

2.2 Bought a computer by cheque, R230 000.

2.3 Cash received for services rendered, R14 000.

2.4 Paid the annual fire insurance by cheque R22 400.

2.5 Received R2 000 from a debtor in part settlement of her account.

2.6 The tenant paid the monthly rental to Mac Limited, R15 000

2.7 Received an account for repairs to the machinery, R17 500.

2.8 Bought fuel for delivery vehicle by cheque, R400.

2.9 Mac took R1 800 drawings from the business.

2.10 Cash received for services rendered to Mr Harry who is a valued customer, R101 150.