Subject: Financial Accounting.

(PLEASE TRY TO GIVE MORE POINTS ITS FOR 10 MARKS) THANK YOU.

1a) Following are the accounting transactions relating to Mr. P's business. Use the accounting equation to show their effect on his assets, liabilities and capital. (10 Marks)

1. Commenced business with a Capital of 150,000

2. Bought Machinery for cash 10,000

3. Purchased goods for cash 15,000

4. Purchased goods from A on credit 5,000

5. Sold goods for cash 10,000

6. Paid to A 2,000

7. Sold goods to B on credit 3,000

8. Paid into Bank 16,000

9. Paid to A by cheque 1,000

10. Received from B a cheque for 2,000