Question
Suppose Tim purchases laptops for his employees, to the value of R100,000. In order to afford this transaction, Tim does the following: He takes out
Suppose Tim purchases laptops for his employees, to the value of R100,000. In order to afford this transaction, Tim does the following: He takes out a bank loan to the amount of R75,000. He contributes an amount of R25,000 of his own money in the form of equity, which, at the time, gets held as cash in his business. Explain how these transactions reflect in terms of the accounting equation and double entry system. Provide a sentence for each T-account (above it) to explain how the account is affected and populate the T-account provided with the relevant amount, indicating whether the account increases or decreases by using + and symbols. Start writing here:
Window Question 2 Suppose Tim purchases laptops for his employees, to the value of R100.000. In order to afford this transaction, Tim does the following He takes out a bank loan to the amount of R75,000 He contributes an amount of R25,000 of his own money in the form of equity, which at the time gets held as cash in his business Explain how these transactions reflect in terms of the accounting equation and double entry system Provide a sentence for each account above it to explain how the account is affected and populate the T-account provided with the relevant amount, indicating whether the account increases or decreases by using and symbols Start writing here: Laptops Shareholder capital Loan liability (Ctrl)
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